Definition of Alternative Dispute Resolution (ADR)

alternatives to the slow and costly process of litigation, including arbitration, conciliation, mediation, and summary possession proceedings. Some of these processes, such as mediation and arbitration, are being used by court systems to resolve disputes before trial.

many different, unofficial, and voluntary nonlitigation processes employed by insurance companies to resolve contractual disputes with their insureds. Examples would include nonbinding arbitration, simple negotiations between the insurance company and its insured, and mediation by a neutral third party. The objective of this type of dispute resolution is to avoid the substantial expenses that protracted litigation would generate.