West Virginia Adjusters Practice Exam

When the settlement difference between an insurer and a claimant is minor:

1. it should be an automatic denial.

2. it should be referred to a legal team.

3. it should be settled in favor of the claimant.

4. it should be disregarded.

The correct answer is: it should be an automatic denial.

The correct approach when the settlement difference between an insurer and a claimant is minor typically involves assessing whether the issue can be resolved without formal denial or legal intervention. In many cases, insurers aim to resolve claims efficiently while minimizing costs and maintaining good relationships with claimants. Therefore, an automatic denial would not be a reasonable strategy for a minor difference, as this could escalate the situation unnecessarily. The preferred course of action is often to negotiate a compromise that respects both the insurer's and the claimant's positions. This could lead to an amicable resolution without the need for extensive legal involvement or making the process adversarial. By focusing on settlement methods and negotiations rather than denying claims outright or quickly favoring the claimant, insurers can often handle minor disputes more effectively and maintain higher levels of customer satisfaction.