Arbitration
A binding or non-binding process where an arbitrator or panel decides a dispute outside of court, per contract or agreement.
Insurance policies and UM/UIM endorsements often require arbitration for certain disputes. Binding arbitration produces a final award with limited judicial review. Rules and arbitrator selection follow the policy or forum rules.
Arbitration can be faster and cheaper than trial but may limit discovery and appeal rights.
Examples
Underinsured motorist coverage disputes go to binding arbitration with a three-arbitrator panel per state statute.
Common Misconceptions
Confusing appraisal with arbitration — different scope and procedures. Signing arbitration agreements without reading appeal limitations is risky.
Related Terms
Browse the Insurance Claims Glossary
Looking for more insurance and claims terminology? Browse the complete A-Z glossary or explore the Claims Pages Academy for licensing guides, coverage explainers, and more.
Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
