Choice of Law: Has the Value of Your Insurance Been Left to Chance?

P olicyholders are forced
to play a game of
Russian Roulette every
time they submit a sizeable
claim to their insurance
company. They have no way
of knowing whether the claim will be paid or
coverage will be arbitrarily denied, leaving the
company (or its risk manager) to take a bullet in
the head. This uncertainty results from two
things: (1) insurance companies routinely deny
all manner of valid claims; and (2) whether the
policyholder can enforce its rights in court or
through settlement often depends upon which
state’s law governs the claim.