CCP Settlement Negotiation Tactics 2

Question 1

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?

Accepted Answer

Acknowledge the demand, then present a well-documented counter supported by evidence

Answer

Acknowledging the demand while presenting a documented counter anchors the negotiation in evidence and maintains productive dialogue.

Question 2

What does the term 'bracketing' mean in settlement negotiation?

Accepted Answer

Making offers that bracket the target settlement in progressively narrowing ranges

Answer

Bracketing involves making offers that frame the target settlement amount between progressively narrowing high and low figures.

Question 3

A claimant refuses to provide a medical authorization needed to evaluate their injury claim. What is the most appropriate action?

Accepted Answer

Explain the necessity of the authorization and document the refusal in the file

Answer

Explaining the requirement and documenting the refusal protects the insurer's position while giving the claimant an opportunity to cooperate.

Question 4

Which negotiation technique involves deliberately delaying responses to create pressure on the opposing party?

Accepted Answer

Time pressure tactic

Answer

The time pressure tactic exploits deadlines or delays to make the opposing party feel compelled to settle quickly.

Question 5

When evaluating a bodily injury claim for settlement purposes, which factor is LEAST relevant to economic damages?

Accepted Answer

Claimant's pain and suffering narrative

Answer

Pain and suffering is a non-economic damage; economic damages focus on measurable financial losses like wages and medical costs.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Settlement Negotiation Tactics 2