What negotiation method allows each party to select an appraiser to determine a settlement?

• A. Mediation
• B. Appraisal
• C. Conciliation
• D. Settlement

Answer: (B)

The appraisal method is specifically designed for situations where there is a disagreement on the value of a particular claim, such as in property insurance disputes. In this method, each party involved selects their own appraiser, and those appraisers then work together to determine the fair value of the loss. If the appraisers cannot agree, they often appoint an impartial third appraiser or an umpire to help reach a resolution. This process helps ensure that both parties feel their perspectives are considered in the valuation process, making it a balanced approach to resolving disputes over monetary issues related to claims.

In distinction, mediation focuses more on facilitating negotiation between parties through a neutral mediator but does not involve appraisers determining values. Conciliation also involves neutral mediation but leans toward resolving differences through dialogue rather than formal appraisal processes. Settlement refers broadly to the agreement reached by the parties but does not specify a method for determining values, such as the appraisal method does. Thus, the appraisal method is the appropriate choice when both parties aim to choose their appraisers as part of the settlement process.