Insurance arbitration relies upon an arbitrator (the neutral third party) to make an appropriate decision based on the specifics of a claim or case. Arbitration is the process of using a third party to settle a dispute instead of taking the case to court.When a disagreement over a claim arises, arbitration is often utilized to resolve the conflict without having to go through the litigation process. In the realm of insurance claims, insurance arbitration serves as an alternative to litigation for resolving disputes over claims. Car accident arbitration involves a hearing where you and the insurance company present information about your claim to a neutral person, called an arbitrator. Arbitration is a contract-based form of binding dispute resolution. Fill it out completely, sign and mail it to the Arbi- tra on Unit, Insurance Department,. State of Connec cut, P.O Box 816,. Car accident arbitration involves a hearing where you and the insurance company present information about your claim to a neutral person, called an arbitrator. Arbitrators are experienced lawyers.