CCP Claims Settlement & Negotiation 3

Question 1

Which element is NOT typically required to establish a valid release in claims settlement?

Accepted Answer

Notarization

Answer

While consideration, competent parties, and mutual agreement are required contract elements, notarization is generally not required for a valid release.

Question 2

In workers' compensation claims, a 'compromise and release' settlement differs from a 'stipulated award' in that it:

Accepted Answer

Fully and finally resolves all past and future benefits in exchange for a lump sum

Answer

A compromise and release settles all workers' compensation benefits—including future medical—for a lump sum, closing the claim entirely.

Question 3

What is the primary purpose of a 'reservation of rights' letter in the claims process?

Accepted Answer

To preserve the insurer's right to deny coverage while investigating

Answer

A reservation of rights letter allows the insurer to investigate and defend the claim without waiving potential coverage defenses.

Question 4

In bodily injury negotiations, 'special damages' refer to:

Accepted Answer

Quantifiable out-of-pocket losses like medical bills and lost wages

Answer

Special damages are economic losses that can be calculated precisely, such as medical expenses, lost earnings, and property damage.

Question 5

An adjuster settling a minor's claim must typically:

Accepted Answer

Obtain court approval of the settlement

Answer

Settlements involving minors require court approval via a guardian ad litem proceeding to protect the minor's interests.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Claims Settlement & Negotiation 3