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In the Matter of ALLSTATE INSURANCE COMPANY, Appellant, v. HOWARD GELLER, Respondent.

Ordered that the order is modified, on the law and the facts, by deleting therefrom the provision directing arbitration before the American Arbitration Association and substituting therefor a provision directing arbitration before a three-member panel pursuant to the terms of the insurance policy in question; as so modified, the order is affirmed insofar as appealed from, without costs or disbursements.

Contrary to the assertions of the petitioner Allstate Insurance Company (hereinafter Allstate), the evidence supports the hearing court's determination that the respondent was a "resident of the same household" as the holder of a policy issued by Allstate ( see, Kradjian v. American Mfrs. Mut. Ins. Co., 206 A.D.2d 801; New York Cent. Mut. Fire Ins. Co. v. Kowalski, 195 A.D.2d 940; Vega v. City of New York, 194 A.D.2d 537; McGuinness v. MVAIC, 18 A.D.2d 1100). Thus, the respondent was an insured party for purposes of the uninsured motorist endorsement of the subject policy. However, the court erred in directing arbitration before the American Arbitration Association (hereinafter AAA).

Pursuant to the terms of the subject policy, a timely objection to arbitration before the AAA by either party requires that arbitration proceed before a three-member panel. Here, Allstate received the demand for arbitration on May 1, 1992, and objected on May 19, 1992, to arbitration before the AAA. Thus, Allstate's objection to arbitration before the AAA was timely and arbitration before a three-member panel pursuant to the terms of the contract is required (see, CPLR 7503; Matter of Aetna Cas. Sur. Co. v. Jones, 188 A.D.2d 597; Matter of Allstate Ins. Co. [Metayer], 137 A.D.2d 454; Matter of Aetna Cas. Sur. Co. v Cinisomo, 197 A.D.2d 683).

We have considered Allstate's remaining contentions and find them to be without merit. Miller, J.P., O'Brien, Ritter and Goldstein, JJ., concur.

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MATTER OF ALLSTATE INSURANCE CO. v. GELLER
(Aug 28, 1995)