AIC Negotiation & Settlement Techniques

Question 1

Which negotiation strategy involves making an initial offer significantly higher or lower than the expected settlement to anchor the other party's expectations?

Accepted Answer

Anchoring

Answer

Bracketing

Answer

Mirroring

Answer

Nibbling

Question 2

In claims negotiation, a 'reservation point' refers to:

Accepted Answer

The maximum or minimum value at which a party will walk away from negotiations

Answer

The date a claim is reserved in the system

Answer

A hold placed on settlement funds

Answer

The mediator's recommended settlement range

Question 3

A BATNA in claims settlement negotiations stands for:

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

Best Achievable Terms in Negotiated Agreement

Answer

Basic Approach To Neutral Arbitration

Answer

Binding Arbitration Terms in Negligence Actions

Question 4

When a claimant demands $50,000 and the adjuster offers $20,000, and both parties agree to split the difference at $35,000, this is an example of:

Accepted Answer

Compromising via midpoint settlement

Answer

Principled negotiation

Answer

Bracketing

Answer

Integrative bargaining

Question 5

Which of the following best describes 'integrative bargaining' in a claims context?

Accepted Answer

Parties work together to find creative solutions that expand value for both sides

Answer

Each party gives up something to reach agreement

Answer

The adjuster integrates all claim data before making an offer

Answer

A mediator integrates both parties' positions into a final award

Question 6

When documenting a negotiated settlement, which element is most critical to include to protect the insurer from future claims arising from the same incident?

Accepted Answer

A full and final release of all claims

Answer

The claimant's signature date

Answer

The adjuster's claim reserve amount

Answer

The subrogation waiver clause

Question 7

An adjuster is negotiating a bodily injury claim. The claimant's attorney presents a demand package with medical specials of $10,000. Using the 'multiplier method,' a reasonable general damages estimate at 3x specials would be:

Accepted Answer

$30,000

Answer

$10,000

Answer

$20,000

Answer

$40,000