What does Honorable Engagement or Undertaking mean? Read on to discover the definition & meaning of the term Honorable Engagement or Undertaking - to help you better understand the language used in insurance policies.
Honorable Engagement or Undertaking
A phrase found in some reinsurance agreements that typically provides that arbitrators shall interpret the reinsurance contract as an "honorable engagement" and not merely as a legal obligation. The discretion given to reinsurance arbitrators means that strict contract construction may or may not take place during a reinsurance arbitration. While many reinsurance contracts continue the tradition of the honorable engagement clause, more recently reinsureds and reinsurers have been moving away from incorporating honorable engagement language in their reinsurance contracts.
We hope the you have a better understanding of the meaning of Honorable Engagement or Undertaking.