Act-As-One Provision — in reinsurance contracts, a provision that is included to avoid the situation
where multiple reinsurers are all part of the same dispute and each wants to
appoint its own arbitrator. The act-as-one provision compels the reinsurers to
act in concert in the selection of the arbitration panel and in all major
communications and decisions concerning the dispute. It reserves to the
reinsurers the right to assert their own claims or defenses, and it is does not
impair the several liability that typically exists under most reinsurance
agreements. It allows the arbitration process to move forward without confusion
as to how many arbitrators the disputing parties will appoint. Essentially, it
treats the reinsured as one party (which it is) and the reinsurers' as one
party when the dispute involves more than one reinsurer. This way, the two
"parties" or sides can each appoint one arbitrator, and the
party-appointed arbitrators can appoint the umpire, fulfilling the contractual
requirement of a three-arbitrator panel.