Process of handling a dispute by an impartial third party, chosen by the parties in the dispute ,who agree in advance to abide by the arbitrator’s award issued after a hearing at which both parties have a chance to be heard.
Arbitration Clause
- Language provision in an insurance policy which provides a means of resolving differences between an insurer and an insured, without litigation.
- Usually, each party appoints an arbiter. The two arbiters select a third, or an umpire; A majority decision of the three becomes binding on the parties in the arbitration proceedings.