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Title XXVIII CONTRACTS AND CONTRACTUAL RELATIONS

Chapter 435

previous next Effective - 28 Aug 1996bottom

  435.350.  Validity of arbitration agreement, exceptions. — A written agreement to submit any existing controversy to arbitration or a provision in a written contract, except contracts of insurance and contracts of adhesion, to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract.  Contracts which warrant new homes against defects in construction and reinsurance contracts are not "contracts of insurance or contracts of adhesion" for purposes of the arbitration provisions of this section.

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(L. 1980 H.B. 1203 § 1, A.L. 1996 H.B. 929)

(2000) Section regulates the business of insurance and thus is not preempted by the Federal Arbitration Act due to the provisions of the McCarran-Ferguson Act.  Standard Security Life Ins. Co. v. West, 127 F.Supp.2d 1064 (W.D.Mo.); aff'd, 267 F.3d 821 (8th Cir. 2001).

(2011) Attempted preemption by the Federal Arbitration Act of section's exclusion of arbitration provisions from insurance contracts is barred by the McCarran-Ferguson Act.  Sturgeon v. Allied Professionals Insurance Co., 344 S.W.3d 205 (Mo.App. E.D.).


---- end of effective   28 Aug 1996 ----

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