It is a system of redress which provides an independent mechanism to resolve consumer-business disputes when other means fail. Insurance arbitration relies upon an arbitrator (the neutral third party) to make an appropriate decision based on the specifics of a claim or case.The Consumer Affairs Branch assists consumers through advice inquiries, mediation and arbitration. Insurance contracts issued for delivery within Virginia cannot contain binding arbitration agreements under Virginia law. Arbitration is the process of using a third party to settle a dispute instead of taking the case to court.