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From The Glossary »

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Arbitration Clause:

A clause in an insurance contract which is designed to resolve differences between an insurer and the insured without litigation. It usually provides for the appointment of two arbitrators (each party having the privilege of appointing one), who in turn appoint an umpire (usually agreed upon before arbitration proceedings begin). The wording of the clause may vary, but its general purpose is to enable difficulties to be settled equitably rather than ...
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