meaning of act-as-one provision

act-as-one provision meaning in Insurance Dictionary

In reinsurance contracts, a provision that is included in order to avoid the specific situation where several reinsurers are part of the same dispute and every wants to appoint its arbitrator. The act-as-one supply compels the reinsurers to do something in show inside choice of this arbitration panel plus all major communications and decisions in regards to the dispute. It reserves on reinsurers suitable to say their claims or defenses, and it is cannot impair the number of liability that usually is out there under most reinsurance agreements. It allows the arbitration process to move forward without confusion on how numerous arbitrators the disputing parties will appoint. Essentially, it treats the reinsured as you party (which it really is) additionally the reinsurers' as you celebration when the dispute involves one or more reinsurer. Because of this, the 2 "parties" or edges can each appoint one arbitrator, and the party-appointed arbitrators can appoint the umpire, rewarding the contractual dependence on a three-arbitrator panel.