Arbitration and Alternative Dispute Resolution Clause
The LMA’s North American Casualty Reinsurance Business panel (NACRBP) has published a model arbitration clause (LMA5344) for use on US treaties. The clause is available on the NACRBP section of the LMA website as well as the Lloyd’s Wordings Repository.
The clause outlines the process and timescales for the administration of alternative dispute resolution including arbitration. Included in the provisions is the requirement that, where an arbitration panel is required, it includes one arbitrator appointed by the reinsured and one arbitrator appointed by the reinsurer(s) (both of whom shall be active or retired officers of insurance or reinsurance companies or Lloyd’s syndicates with no less than ten years experience in the casualty insurance or reinsurance industry). The clause also provides that the third, independent, arbitrator shall be a retired federal court judge.
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Manager, Property, Reinsurance and Delegated Underwriting