Understanding Arbitration in Insurance Policies: An Alternative to Court with Benefits for all Parties involved

Which policy condition is invoked when parties to an insured loss cannot agree?-Arbitration-Assignment-Liberalization-Subrogation

Arbitration

The policy condition that is invoked when parties to an insured loss cannot agree is Arbitration. When an insured event occurs, and the parties involved cannot agree on the compensation to be paid or on other matters related to the loss, the insurance policy may include an arbitration clause. This clause states that the parties will submit their dispute to an impartial third party, called an arbitrator, who will make a binding decision. Arbitration is an alternative to going to court and can be less expensive and time-consuming. The decision of the arbitrator is final and binding on both parties.

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