CAIA Negotiation and Settlement 2

Question 1

A claimant rejects your initial offer and presents a demand that exceeds the policy limits. What is the most appropriate next step for the adjuster?

Accepted Answer

Document the demand, advise the insured of the excess exposure, and continue negotiating within authority

Answer

When a demand exceeds policy limits, the adjuster must document it, notify the insured of potential personal exposure, and continue negotiating within delegated authority.

Question 2

Which negotiation technique involves deliberately pausing after making an offer to allow the claimant time to respond without pressure?

Accepted Answer

Strategic silence

Answer

Strategic silence uses deliberate pauses after an offer to create psychological space and encourage the other party to speak or concede.

Question 3

A claimant has a soft tissue injury claim with no objective medical evidence. What approach best supports a fair settlement evaluation?

Accepted Answer

Evaluate based on the claimant's reported symptoms, treatment history, and comparable verdicts in the jurisdiction

Answer

Soft tissue claims should be evaluated using reported symptoms, treatment records, and local jury verdict research to determine a fair value.

Question 4

What is 'bracketing' in the context of insurance claim negotiations?

Accepted Answer

Making an offer so that the midpoint between your offer and the claimant's demand equals your target settlement

Answer

Bracketing is a technique where the adjuster makes an offer so that the mathematical midpoint between that offer and the claimant's demand is the adjuster's actual target settlement figure.

Question 5

Under what circumstance is it appropriate for an adjuster to bypass the claimant and negotiate directly with the claimant's attorney?

Accepted Answer

Only when the claimant has formally designated the attorney as their authorized representative

Answer

Once a claimant retains an attorney and designates them as their representative, the adjuster must direct all settlement communications through the attorney.

(CAIA) Certified Automotive Insurance Adjuster Practice Test

(CAIA) Certified Automotive Insurance Adjuster Practice Test

CAIA Negotiation and Settlement 2