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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. What does 'mediator's proposal' mean in the mediation process?

    Answer: The mediator suggests a specific settlement figure that both parties independently accept or reject

    A mediator's proposal is a confidential suggested number that breaks impasse; both parties accept or reject it without knowing the other's response.

  2. Which negotiation principle suggests that the first number offered sets the psychological anchor for the negotiation?

    Answer: Anchoring

    Anchoring is the cognitive bias where the first number mentioned heavily influences all subsequent offers in a negotiation.

  3. What is 'BATNA' and why is it important in claims negotiation?

    Answer: Best Alternative to a Negotiated Agreement — the fallback if negotiation fails

    BATNA is the best option available if the current negotiation fails; knowing yours and the claimant's BATNA gives leverage.

  4. A property claim involves a disputed repair estimate. What is the most effective way to resolve a scope-of-damage disagreement?

    Answer: Schedule a joint inspection with both estimators to reconcile differences

    A joint inspection with both estimators allows line-by-line reconciliation of scope differences and is the standard industry approach to disputed estimates.

  5. What is a 'consent to settle' clause and when does it matter?

    Answer: It gives the insured the right to approve or veto any settlement

    A consent to settle clause allows the insured to block a proposed settlement, which can create coverage disputes if the adjuster settles without consent.

  6. When evaluating a soft tissue injury claim, what tool do many adjusters use to estimate settlement ranges?

    Answer: Colossus or similar claims evaluation software

    Colossus and similar software analyze injury type, treatment, and jurisdiction to produce an estimated settlement range for soft tissue claims.

  7. What is the effect of a 'full and final release' signed by a claimant?

    Answer: It permanently resolves all claims arising from the incident in exchange for payment

    A full and final release extinguishes all past, present, and future claims from the incident once signed and payment is made.