Which of the following methods is used for resolving disputes without a court?

Prepare for the CIC Insurance Operations Test. Enhance your knowledge with in-depth questions and detailed explanations. Master the material and boost your confidence for exam day!

Mediation is a method used for resolving disputes outside of the court system. It involves a neutral third-party mediator who facilitates discussions between the parties involved in the dispute. The goal of mediation is to help the parties reach a mutually agreeable solution without the need for a formal trial or litigation process. Mediation is often preferred because it tends to be less adversarial, more cost-effective, and can provide quicker resolutions compared to traditional court proceedings.

Understanding this distinction is crucial because litigation is a formal legal process that involves the court system, where a case is argued before a judge or jury. Appraisal, while it can also serve a purpose in resolving insurance disputes (especially related to claims), typically pertains to the evaluation of property value rather than a broad dispute resolution method. Therefore, among the options provided, mediation is the one that distinctly aligns with the concept of resolving disputes without court involvement.

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