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Reply To: Reg Z Prohibition against mandoatory arbitration and waivers

#3580
sgilreath
Member

The title Insurance Company provides a Deletion of Arbitration Provision disclosure at closing that states, “Your policy contains an arbitration provision. It allows you or the Company to require abitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you msut request deletion of the arbitration provision before the policy is issued.”

I don’t believe the language in this disclosure pertains to the Prohibition on Mandatory Arbitration since this document is not a part of the bank’s contract or agreement. I’m looking for confirmation or opinions.