Insurer Unsuccessful In Attempt To Compel Arbitration Of UIM Coverage Dispute

In a case that is consistent with most other courts that have considered the issue, the U.S. Fifth Circuit Court of Appeals held that Mississippi’s law prohibiting arbitration of disputes regarding UIM coverage was valid and not pre-empted by the Federal Arbitration Act. See American Bankers Ins. Co. of Florida v. Inman, 2006 WL 52273 (January 11, 2006).
It’s surprising how frequently this issue is litigated, considering the McCarran-Ferguson Act has been around since 1945, and was enacted specifically to prevent federal statutes from pre-empting state regulation of insurance.