CALA Negotiation & Settlement Techniques 3

Question 1

What is 'structured settlement' in claims resolution?

Accepted Answer

Periodic payments over time instead of a single lump sum

Answer

A structured settlement provides a claimant with tax-free periodic payments over time rather than one lump-sum payment.

Question 2

A claimant refuses all offers and demands a jury trial. Which negotiation tool can still be used before trial?

Accepted Answer

Participating in mediation or arbitration

Answer

Mediation and arbitration are alternative dispute resolution tools available before or during trial to resolve claims without a verdict.

Question 3

What is 'comparative negligence' and how does it affect settlement negotiations?

Accepted Answer

It reduces the claimant's recovery by their percentage of fault

Answer

Under comparative negligence, a claimant's recovery is reduced proportionally by their percentage of fault, directly lowering settlement value.

Question 4

When should an adjuster consider using a 'high-low' agreement in arbitration?

Accepted Answer

When both parties want to cap maximum exposure and guarantee a minimum recovery

Answer

A high-low agreement sets a floor and ceiling on the arbitration award, protecting both parties from extreme outcomes.

Question 5

What is the significance of a 'Stowers demand' in Texas claims handling?

Accepted Answer

It is a demand within policy limits that triggers the insurer's duty to accept or risk excess liability

Answer

A Stowers demand obligates an insurer to accept a reasonable within-limits demand or potentially face liability for any excess judgment.

(CALA) Certified All-Lines Adjuster Practice Test