honorable engagement or undertaking

Honorable engagement or undertaking is 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, reinsureds and reinsurers have been moving away from incorporating honorable engagement language in their reinsurance contracts.