N.J. Awards No-fault Contract to National Arbitration Forum

February 17, 2004

New Jersey has awarded the Minneapolis-based National Arbitration Forum (NAF) a three-year contract, beginning April 16, 2004, to administer arbitrations for No-Fault Insurance Personal Injury Protection (PIP) disputes under the state’s Automobile Insurance Cost Reduction Act of 1998.

The NAF is expected to handle approximately 20,000 cases per year, adding to its existing, growing national caseload. According to cost estimates, the NAF-administered arbitration program will save N.J.’s policyholders and insurers nearly $4 million over the next three years compared to the former program.

The announcement noted that in selecting NAF state authorities had conducted a rigorous evaluation, and had concluded with a unanimous recommendation that the contract be awarded to the NAF. It cited a statement by the selection committee that it had “determined that the bid proposal represents the most advantageous offer to the State, price and other factors considered. NAF is the bidder with the lowest cost and highest technical score. In addition to NAF, other national ADR administrators, including the American Arbitration Association (the incumbent administrator) and JAMS/Endispute, sought to administer the New Jersey program.”

NAF’s Managing Director, Ed Anderson, stated, “As a premier national ADR administrator, the National Arbitration Forum is committed to providing the highest quality, most timely, and most cost-effective access to justice for all litigants and their counsel. We could not be more pleased that the State of New Jersey recognized these important qualities of our service in a head- to-head comparison with other esteemed ADR providers.”

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