meaning of alternative dispute resolution provision

alternative dispute resolution provision meaning in Insurance Dictionary

A clause found within expert responsibility guidelines stating that conflicts concerning the application of coverage beneath the plan will undoubtedly be dealt with by alternative dispute quality (ADR) approaches (generally arbitration), instead of through traditional courtroom system. Some guidelines contain mandatory arbitration terms, stating that disputes needs to be settled in this manner. On the other hand, other ADR arrangements afford the insured the option—but maybe not the obligation—to submit these types of conflicts to arbitration. The second type of this provision is more advantageous the insured.