Honorable engagement or undertaking

{
  "id": "MLC-T-INS-001744",
  "term": "Honorable engagement or undertaking",
  "field": "Insurance and risk management",
  "definition": "A principle in reinsurance where parties are expected to act in good faith and uphold the spirit of their agreements, even if a strict legal interpretation might allow for a different outcome. This concept emphasizes trust and mutual understanding in the long-term relationships between reinsurers and ceding companies. It often implies that disputes should be resolved through arbitration rather than litigation.",
  "url": "https://mlchart.com/terminology/insurance/honorable-engagement-or-undertaking/"
}