In an insurance sense, a number of disparate processes used by insurance companies to resolve claim and contractual disputes. Insured clients who are denied a claim are offered this course of action as a form of recourse. Alternative dispute resolution is employed to avoid expensive and time-consuming litigation and arbitration.

Investopedia Says:
Alternative dispute resolution can take many forms. Examples of this type of resolution are non-binding arbitration and simple, direct negotiation between the insured and the carrier. In some cases, a neutral third party can be brought in to act as a mediator, if necessary.

Related Links:
We show you how to resolve a problem without getting the lawyers involved. Is Your Broker Ripping You Off?
Do you have a claim you'd like to file? We'll take you through this process step by step. When A Dispute With Your Broker Calls For Arbitration
Find out how to file a claim with your broker and what you can expect throughout the process. So, You Want To Take Your Broker To Court

Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved.