Federal Court Finds Appraisal Award Cannot Be Defeated by Exclusions

A federal court anticipating how the Indiana Supreme Court would rule determined that an Appraisal award cannot be defeated by an insurer’s reliance upon policy exclusions. In Mesco v. Motorists, the Southern District of Indiana district court held that an Appraisal award is binding upon an insurer where causation is determined. While such an award does not necessarily have to establish causation, if it does the insurer cannot rely upon an exclusion that would remove coverage for another form of causation.

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