Arbitration Agreement

An Arbitration Agreement is a legal contract between a policyholder and an insurer, requiring that any disputes or claims arising out of the insurance policy be resolved through binding arbitration rather than litigation. The agreement typically specifies the rules and procedures for the arbitration, including the selection of the arbitrator, the scope of discovery, and the allocation of costs. The purpose of an arbitration agreement is to provide a faster, less formal, and potentially less expensive means of resolving insurance disputes than going to court. Arbitration agreements may be included as part of the insurance policy or may be entered into separately by the parties. Policyholders should carefully review and consider the terms of an arbitration agreement before agreeing to it, as it may limit their legal rights and remedies.