How is an insurance claim dispute resolved?

In North Carolina, insurance claim disputes can be resolved in a number of ways. If the dispute is between the insured and the insurer, the parties can seek resolution through mediation or arbitration. Mediation is a form of alternative dispute resolution where an impartial third party helps the parties resolve the dispute. The mediator does not make a ruling or decision, but rather helps the parties come to an agreement that is mutually satisfactory. Arbitration is similar to a court proceeding; however, it is usually less formal and less expensive. In arbitration, an impartial third party will hear the evidence presented by both sides and make a decision that is legally binding. If the dispute is between the insured and a third party, the parties can either seek resolution through negotiation or litigation. Negotiation is a process of bargaining and compromise between the parties to create an agreement that both sides can accept. Litigation is a formal process involving a court hearing and a decision made by an unbiased judge or jury. No matter which route is chosen, the dispute resolution process begins when both parties file a claim with their respective insurance companies. The claims are reviewed and investigated, and the insurer either accepts or denies the claim. If the claim is denied, the parties can negotiate a settlement, mediate the dispute, or take the case to court. Overall, insurance claim disputes can be resolved in a number of ways, depending on the situation. Negotiation, mediation, arbitration, and litigation are all options that should be considered in order to reach a resolution that is fair and satisfactory to both parties.

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