What is the term for discussions that occur when an insurer and a claimant disagree about payments?

• A. Assessment
• B. Negotiations
• C. Arbitration
• D. Litigation

Answer: (B)

The term that accurately describes discussions that occur when an insurer and a claimant disagree about payments is "negotiations." This process typically involves both parties attempting to reach an agreement regarding the terms of the claim payment, including the amount and conditions under which compensation will be provided.

Negotiations are often the first step taken after a claim is filed, as they allow both the insurer and the claimant to communicate their perspectives and seek a mutually acceptable solution without resorting to more formal processes. This approach can save time and resources for both parties compared to more adversarial methods like arbitration or litigation.

While arbitration refers to a more structured dispute resolution process where a neutral third party makes a binding decision, and litigation involves taking the dispute to court, these methods are usually considered after negotiations have failed to resolve the disagreement. Assessment, in this context, does not pertain to discussions but rather involves the determination of value or damages related to the claim.