Ethics Advisory Opinion No. 3

ARIAS Advisory Opinion 3

When does the ARIAS ARIAS•U.S. Code of Conduct Apply?

Facts Presented

An arbitrator who is currently a member of ARIAS•U.S. and is certified by ARIAS•U.S. as an arbitrator is asked at the organizational meeting to affirm that the arbitrator will comply with the ARIAS•U.S. Code of Conduct. The arbitration proceeding is an ad hoc proceeding and is not being conducted under any of the ARIAS•U.S. Rules. In these circumstances, must the arbitrator affirm that they will abide by the ARIAS•U.S. Code of Conduct?  Does being a Certified ARIAS•U.S. Arbitrator or Umpire de facto mean that that person is bound by the ARIAS•U.S. Code of Conduct in any arbitration?   

RESPONSE FROM THE ETHICS COMMITTEE

Advisory Opinion No. 3

Topic Areas: Canon I, Canon III

Opinion:

1. Both as a current member of ARIAS•U.S. and a Certified Arbitrator, the arbitrator is bound by the Code of Conduct, and should affirm that they will abide by it.
2. Since its founding, one of the objectives of ARIAS has been to promote the integrity of the arbitration process in insurance and reinsurance disputes. To further that objective, the Code of Conduct was adopted in June 1998, and has periodically been revised. 
3. Since 2010, ARIAS•U.S. has required that all ARIAS•U.S. Certified Arbitrators “agree to abide by and be subject to” the Code of Conduct. 
4. To become an ARIAS•U.S. Certified Arbitrator, a candidate for certification must sign and submit an application. The application states “BY SIGNING AND SUBMITTING THIS APPLICATION TO ARIAS·U.S., I AGREE TO ABIDE BY AND BE SUBJECT TO THE ARIAS·U.S. CODE OF CONDUCT AND THE BY-LAWS OF ARIAS·U.S.”
5. When an organization or individual applies to become an ARIAS•U.S. member, they agree that they have read the ARIAS•U.S. Code of Conduct and the Bylaws of ARIAS•U.S. and agree to abide and be bound by the ARIAS•U.S. Code of Conduct and the By-Laws of ARIAS•U.S. 
6. Canon III of the Code requires arbitrator candidates to “accurately represent their qualifications to serve.” Comment 1 explains that “[c]andidates should provide up-to-date information regarding their relevant training, education and experience . . . to ensure that their qualifications satisfy the reasonable expectations of the parties.” A party appointing an ARIAS•U.S. Certified Arbitrator expects that the arbitrator will abide by the Code of Conduct. If the arbitrator is unwilling to affirm that they will abide by the Code of Conduct, that is critical information for the party appointing the arbitrator to know since it is incompatible with the arbitrator’s representation that they are ARIAS•U.S.-certified.
7. One of the purposes of the Code of Conduct is to foster confidence in the integrity, fairness, and competence of the arbitrators. See Purpose and Canon I.  An ARIAS•U.S. Certified Arbitrator who is unwilling to affirm that they will abide by the Code of Conduct impairs the parties’ confidence in the integrity and fairness of the proceedings.