If the insurer and provider or facility cannot agree on the amount for the service within 30 days, the dispute is settled through arbitration. Arbitration is an Alternative Dispute Resolution (ADR) process used to resolve disputes outside the court system.Arbitration is a way to resolve a dispute between a plaintiff and a defendant in a personal injury case that uses an impartial arbitrator. Learn how arbitration can resolve certain disputes out of the court. Instead of a judge, impartial arbitrators make the legal decision. Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction. 200 protects the right of policyholders to bring an original "action against the insurer" in the courts of Washington state.