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Be Careful With NY Honorable Engagement Provisions
These provisions expand the already sizable discretion of arbitrators and can significantly impact the adjudication of reinsurance disputes. This article explores the application of honorable engagement provisions under New York law.
February 20, 2013
Law360, New York (February 20, 2013, 12:21 PM ET) ‐‐ "Honorable engagement" provisions are a holdover from the days when reinsurance agreements were often made on an informal basis between individuals who had longstanding business relationships but lacked the kind of detailed information that is often integral to modern reinsurance transactions. This level of trust may seem antiquated to some, but honorable engagement provisions still play a prominent role in modern reinsurance agreements.
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