Settlement Negotiation Tactics Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Settlement Negotiation Tactics flashcards as text
During a negotiation, the opposing counsel makes an extreme opening demand far above the claim's value. What is the BEST initial response for a claims professional?
Answer: Acknowledge the demand, then present a well-documented counter supported by evidence
Acknowledging the demand while presenting a documented counter anchors the negotiation in evidence and maintains productive dialogue.
What does the term 'bracketing' mean in settlement negotiation?
Answer: Making offers that bracket the target settlement in progressively narrowing ranges
Bracketing involves making offers that frame the target settlement amount between progressively narrowing high and low figures.
A claimant refuses to provide a medical authorization needed to evaluate their injury claim. What is the most appropriate action?
Answer: Explain the necessity of the authorization and document the refusal in the file
Explaining the requirement and documenting the refusal protects the insurer's position while giving the claimant an opportunity to cooperate.
Which negotiation technique involves deliberately delaying responses to create pressure on the opposing party?
Answer: Time pressure tactic
The time pressure tactic exploits deadlines or delays to make the opposing party feel compelled to settle quickly.
When evaluating a bodily injury claim for settlement purposes, which factor is LEAST relevant to economic damages?
Answer: Claimant's pain and suffering narrative
Pain and suffering is a non-economic damage; economic damages focus on measurable financial losses like wages and medical costs.
A claims professional discovers during negotiations that the claimant has a pre-existing condition that aggravates the claimed injury. How should this affect the settlement evaluation?
Answer: Only the aggravation of the pre-existing condition should be compensated, not the underlying condition
Under the 'thin skull' and aggravation doctrines, liability generally extends only to the degree the accident worsened a pre-existing condition.
What is a 'Mary Carter agreement' in the context of multi-party settlement negotiations?
Answer: A secret agreement between the plaintiff and one defendant that affects the remaining defendant's liability
A Mary Carter agreement is a confidential settlement between a plaintiff and one defendant that typically guarantees the plaintiff a minimum recovery while the settling defendant remains in the case.