How is an insurance claim dispute resolved?

In California, insurance claim disputes are resolved using a process called ‘Alternative Dispute Resolution’ (ADR). ADR is a way for insurers and policyholders to resolve their differences without having to go to court. It involves both parties choosing an attorney or mediator who acts as a neutral third-party to help work out a solution. The ADR process begins by both parties submitting a statement of their position to the mediator. The mediator will then evaluate the claims to determine what needs to be done to resolve the dispute. This might involve getting more information from each party or hearing both sides of the story. Once the mediator is comfortable that both parties understand the situation, they will ask each party to make an offer or a counter-offer that can be used to resolve the dispute. For example, if the insurance company is denying a claim that the policyholder believes is covered, the policyholder might make an offer to settle for an amount less than what they originally asked for. Once an agreement is reached, the mediator will sign a document that both parties can use to end the dispute. This document will outline the final decision and any concessions made by either party. It is then up to both parties to follow the agreement. Using ADR for insurance claim disputes is beneficial for both parties because it is a less expensive and less time-consuming process than going to court. In addition, it can help both parties resolve their dispute without having to take the dispute public.

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