CMC Claims Handling & Conflict Resolution 3 — Questions and Answers
Question 1: What is the maximum time a carrier has under FMCSA regulations to pay, deny, or make a settlement offer on a household goods claim?
- 60 days from receipt of claim
- 90 days from receipt of claim (Correct answer)
- 120 days from receipt of claim
- 180 days from receipt of claim
Correct answer: 90 days from receipt of claim
FMCSA regulations require carriers to pay, deny, or make a firm settlement offer within 90 days of receiving a written claim.
Question 2: A moving consultant is mediating a dispute where the customer claims a TV was broken during transit but there are no delivery exceptions noted on the inventory. How does this affect the claim?
- The customer automatically loses the claim
- The lack of noted exceptions creates a presumption that the item was delivered in good condition (Correct answer)
- The carrier must pay full replacement value regardless
- The claim is escalated to the FMCSA automatically
Correct answer: The lack of noted exceptions creates a presumption that the item was delivered in good condition
Without delivery exceptions noted on the inventory, there is a legal presumption of delivery in good condition, which the customer must overcome with other evidence.
Question 3: In a cargo claims scenario, what does 'subrogation' mean for a moving carrier?
- The carrier's right to pursue a third party responsible for the damage after paying the customer's claim (Correct answer)
- The customer's right to sue the carrier directly
- The carrier's ability to deny claims based on pre-existing damage
- A type of additional insurance coverage
Correct answer: The carrier's right to pursue a third party responsible for the damage after paying the customer's claim
Subrogation allows the carrier, after settling a claim, to pursue recovery from any third party (such as another carrier or vendor) whose negligence caused the damage.
Question 4: Which of the following items typically requires a HIGH-VALUE INVENTORY form during a move?
- Bedroom furniture
- Collectibles or antiques valued over $100 per pound (Correct answer)
- Clothing and personal items
- Standard kitchen appliances
Correct answer: Collectibles or antiques valued over $100 per pound
Items valued at more than $100 per pound require special listing on the High-Value Inventory form to ensure adequate liability coverage.
Question 5: A customer disputes the final moving charges at delivery and refuses to pay the balance. Under FMCSA rules for binding estimates, the carrier:
- Can hold the goods until the customer pays any amount demanded
- Cannot charge more than the binding estimate and must release goods upon payment of that amount (Correct answer)
- May add up to 10% above the binding estimate
- Can return goods to origin until full payment is received
Correct answer: Cannot charge more than the binding estimate and must release goods upon payment of that amount
With a binding estimate, the carrier cannot charge more than the quoted amount and must release the shipment when the customer pays the binding estimate price.
Question 6: When a customer and carrier agree to resolve a claim through binding arbitration, what does 'binding' mean in this context?
- Either party can appeal the decision to a court
- The arbitrator's decision is final and enforceable without court review (Correct answer)
- The customer must use the carrier's preferred arbitrator
- The settlement must be paid within 10 business days
Correct answer: The arbitrator's decision is final and enforceable without court review
In binding arbitration, both parties agree in advance that the arbitrator's decision is final and legally enforceable, limiting the right to appeal.
Question 7: What is the MOST effective way for a CMC to de-escalate a situation where an angry customer confronts a crew chief at delivery about missing items?
- Tell the customer to file a formal complaint in writing
- Separate the parties, listen actively, acknowledge the customer's concern, and begin a joint inventory check (Correct answer)
- Offer an immediate cash settlement to avoid conflict
- Direct the customer to the carrier's legal department
Correct answer: Separate the parties, listen actively, acknowledge the customer's concern, and begin a joint inventory check
Separating parties, active listening, acknowledging concerns, and conducting a joint inventory check de-escalates tension while beginning a factual investigation.
CMC Claims Handling & Conflict Resolution 3
What is the maximum time a carrier has under FMCSA regulations to pay, deny, or make a settlement offer on a household goods claim?