[I112]

intercompany arbitration

When two or more insurers are involved in the settlement of a claim and those insurers are unable to agree as to the amounts and shares owed by each, arbitration may be involved in an attempt to settle the dispute out of court. When this happens, the matter is submitted to disinterested parties for solution. One party is appointed by each insurer, and the appointed arbitrators then pick an "umpire." Resolution occurs when two or more parties come to an agreement. The decision is binding on all parties involved.