Under the ALTA 2006 form policy, when must matters be arbitrated related to an Amount of Insurance of $2,000,000 or less?

Under the ALTA 2006 form policy, the requirement for arbitration in relation to an Amount of Insurance of $2,000,000 or less is triggered at the option of either the Company or the Insured. This provision is designed to facilitate a quicker and often less costly resolution of disputes through arbitration rather than through lengthy court processes. The flexibility of allowing either party to opt for arbitration helps streamline claims handling and maintain an efficient resolution process.

The nature and terms of the ALTA 2006 form policy establish that parties involved can mutually choose arbitration when they wish, thus fostering a cooperative resolution mechanism. By empowering either party to initiate arbitration, it enhances both sides' ability to efficiently address concerns without having to go through a more formal and potentially adversarial judicial proceeding.

While other options might suggest alternatives, such as requiring mutual agreement or judicial approval, the central tenet of the arbitration provision in this context is the option afforded to either party to elect arbitration, emphasizing efficiency and flexibility in resolving claims.