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.