CCP Claims Settlement & Negotiation 4

Question 1

In negotiation, 'BATNA' stands for:

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

BATNA is the Best Alternative To a Negotiated Agreement—knowing it determines the minimum acceptable settlement for either party.

Question 2

Which type of release protects the settling defendant from future claims by co-defendants seeking contribution?

Accepted Answer

Joint tortfeasor release

Answer

A joint tortfeasor release in most jurisdictions extinguishes contribution rights against the settling defendant from other liable parties.

Question 3

An insured reports a claim that clearly exceeds the policy limit. What is the adjuster's primary obligation?

Accepted Answer

Notify the insured of excess exposure and recommend personal counsel

Answer

When damages may exceed policy limits, the adjuster must promptly notify the insured so they can retain personal counsel to protect their excess exposure.

Question 4

'Subrogation waiver' in a settlement agreement means the settling insurer:

Accepted Answer

Gives up its right to recover from the at-fault third party

Answer

A subrogation waiver releases the third party from repaying the insurer for amounts paid on behalf of the insured.

Question 5

In the context of CCP exam principles, 'loss of consortium' is classified as which type of damage?

Accepted Answer

General damages

Answer

Loss of consortium is a general (non-economic) damage representing the deprivation of companionship and support suffered by the claimant's spouse.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Claims Settlement & Negotiation 4