Practice Test Geeks(CALA) Certified All-Lines Adjuster Practice Test
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Negotiation & Settlement Techniques Flashcards

7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Negotiation & Settlement Techniques flashcards as text

  1. A claimant demands $50,000 but the adjuster's reserve is $30,000. What is the most effective opening negotiation tactic?

    Answer: Present a documented counteroffer with supporting rationale

    A documented counteroffer with supporting rationale anchors the negotiation and demonstrates good faith.

  2. What does the term 'bracketing' mean in claims negotiation?

    Answer: Making offers and counteroffers that bracket the target settlement

    Bracketing involves making offers and receiving counteroffers that progressively narrow toward a target settlement figure.

  3. When a claimant attorney sends a time-limited demand, what is the adjuster's primary obligation?

    Answer: Respond within the demand deadline or document reasons for delay

    Failure to respond to a time-limited demand within the deadline can expose the insurer to bad faith claims.

  4. What is 'nuisance value' in claims settlement?

    Answer: A small payment to resolve a weak claim and avoid litigation costs

    Nuisance value is a modest payment made to close a claim with low merit simply to avoid the cost and hassle of litigation.

  5. An adjuster is negotiating with an unrepresented claimant. Which ethical rule is most critical?

    Answer: Treat the claimant fairly and not take advantage of their lack of legal representation

    Adjusters have an ethical and legal duty of good faith that requires fair dealing, especially with unrepresented parties.

  6. Which factor most directly affects the settlement value of a bodily injury claim?

    Answer: The claimant's medical expenses, lost wages, and pain and suffering

    Bodily injury settlement value is primarily calculated from economic damages (medicals, lost wages) plus non-economic damages (pain and suffering).

  7. What is the purpose of a 'Mary Carter' agreement in multi-party litigation?

    Answer: To allow one defendant to settle while remaining a party to help the plaintiff against co-defendants

    A Mary Carter agreement lets one defendant settle secretly while staying in the lawsuit to assist the plaintiff, which many states restrict or prohibit.