CA Negotiation & Settlement Processes 2

Question 1

When a claimant rejects an initial settlement offer, what is the adjuster's best next step?

Accepted Answer

Request a detailed explanation of the claimant's valuation

Answer

Understanding the claimant's basis for rejection allows the adjuster to identify gaps and craft a more targeted counteroffer.

Question 2

What does 'bracketing' mean in the context of insurance claim negotiation?

Accepted Answer

Setting high and low anchor points to guide settlement toward a midpoint

Answer

Bracketing involves offering a range where both parties' positions overlap, steering the negotiation toward a mutually acceptable midpoint.

Question 3

A claimant's attorney sends a demand letter with a 30-day deadline. What should the adjuster do first?

Accepted Answer

Log the deadline, review coverage, and begin evaluation immediately

Answer

Timely response to demand letters is critical to avoid bad faith exposure; the adjuster must log the deadline and begin substantive review.

Question 4

Which negotiation technique involves the adjuster deliberately pausing after presenting an offer?

Accepted Answer

Silence as leverage

Answer

Silence after an offer creates psychological pressure on the other party to fill the void, often prompting concessions.

Question 5

What is a 'Mary Carter agreement' in the context of multi-defendant claims?

Accepted Answer

A settlement where one defendant secretly pays the plaintiff while remaining a nominal defendant

Answer

A Mary Carter agreement allows one defendant to settle privately while appearing to remain in litigation, which can affect the dynamics of the remaining case.

(CA) Certified Adjuster Designation Practice Test

(CA) Certified Adjuster Designation Practice Test

CA Negotiation & Settlement Processes 2