Insurance Glossary

Arbitration

Claims

Definition

An alternative to going to court where a neutral third-party is used to settle a dispute between an insurer and a policyholder, typically regarding claim settlements or coverage interpretations.

Was this definition helpful?

Related Terms

Claim
A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.
Adjuster
A person who investigates claims and recommends settlement options based on estimates of damage and insurance policies held.
Subrogation
The right of an insurer to pursue a third party that caused an insurance loss to the insured, allowing the insurer to recover the amount paid to the insured.
Claimant
The person or business that makes a claim to the insured person or their insurance company, seeking compensation for damages or losses.
Explore More