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Forum Selection Clause

Selects the geographical area of the dispute between you and the insurance company

The forum selection clause is called different things in different policies, but it appears in every one of them.

It is designed to name the forum state (the state where a dispute would be heard).

This clause only applies in case of a dispute between the insured and the carrier. The named forum state is usually the state where the policy was written.

If you garage your vehicle in Delaware, then the most likely forum state of any dispute between you and the insurance company will be Delaware.

You could buy a policy in Washington, for your automobile in Nevada, and you can be involved in an accident in Montana (same vehicle).

Where would the dispute, between the insured and the insurance company, be heard?

Most likely in Nevada because that is where the policy was intended to be used (unless the forum selection clause changes that).

Note that I am speaking of disputes (usually arbitration), for formal lawsuits against the insurance company where the Federal Rules of Civil Procedure apply to these cases.

The forum selection clause is different from the choice of law clause (follow the link below).

The forum selection clause is designed to determine the physical and geographical place of the dispute and nothing else.

This clause could be critical to the resolution of a dispute.

If you have to go to Florida to fight the case with your insurance company from your home in New York, it could be difficult to arrange (if you have to go to court and testify).

It will be hard to obtain witnesses, evidence, testimonies, etc.

Remember that this clause could be defeated if it will be grossly unfair for you to defend your case in that state.

You would have to prove the “grossly unfair” part first, however.

An example of the text in a clause like this is: “all disputes between Carrier Name and the insured will be resolved in Florida”.

Compare Forum Selection Clause with Choice of Law Clause

Click below for an explanation of insurance coverages and terms:

Coverages and Terms Overview

Automobile Liability Insurance or Liability Page 1
Automobile Liability Insurance or Liability Page 2

Automobile Medical Payments or Personal Injury Protection (PIP) Page 1
Automobile Medical Payments or Personal Injury Protection (PIP) Page 2

Collision Coverage (Protection Against Loss to the Auto) Page 1
Collision Coverage (Protection Against Loss to the Auto) Page 2

Comprehensive Coverage (Protection Against Loss to the Auto) Page 1
Comprehensive Coverage (Protection Against Loss to the Auto) Page 2

Under or Uninsured Motorist Property Damage (UMPD) Page 1
Under or Uninsured Motorist Property Damage (UMPD) Page 2

Under or Uninsured Motorist Bodily Injury (UMBI)

Rental Reimbursement or Loss of Use Coverage Page 1
Rental Reimbursement or Loss of Use Coverage Page 2

Restoration Coverage

Towing and/or Road Assistance Coverage (Emergency Packages)

 

Insurance Clauses and Terms

Overview
Actual Cash Value or ACV
Additional Insurance Clause
Cancellation of Coverage Clause
Choice of Law Clause
Forum Selection Clause

Duty to Cooperate Clause
Duty to Report Losses Clause
Financial Responsibility Clause
Insurable Interest Concept
Interpretation of the Policy Concept

Mandatory Arbitration Clause
Mitigation of Damages Clause
Non Duplication of Benefits Clause
Proof of Loss Clause
Promissory Estoppel Concept

Reservation of Rights Concept
Reasonable and Necessary Clause
Right of Appraisal Clause
Right of Settlement Clause
Rights of Counsel Concept

Subrogation of Rights Clause Part I
Subrogation of Rights Clause Part II
Statute of Limitations Concept
Replacement Cost Value
Restoration Coverage
Transfer of Benefits Clause

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