Common use of Basis for Arbitration Clause in Contracts

Basis for Arbitration. The ceding company and the reinsurer mutually understand and agree that the wording and interpretation of this Agreement is based on the usual customs and practices of the insurance and reinsurance industry. While we agree to act in good faith in our dealings with each other, it is understood and recognized that situations arise in which we cannot reach an agreement. In the event that any dispute cannot be resolved to our mutual satisfaction, the dispute will first be subject to good-faith negotiation as described below in an attempt to resolve the dispute without the need to institute formal arbitration proceedings.

Basis for Arbitration. The ceding company Ceding Company and the reinsurer Reinsurer mutually understand and agree that the wording and interpretation of this Agreement is based on the usual customs and practices of the insurance and reinsurance industry. While we both Parties agree to act in good faith in our its dealings with each other, it is understood and recognized that situations may arise in which we they cannot reach an agreement. In the event that any dispute cannot be resolved to our the Ceding Company and Reinsurer's mutual satisfaction, the dispute will first be subject to good-faith negotiation as described below in an attempt to resolve the dispute without the need to institute formal arbitration proceedings.