What is the process of reaching an agreement on the amount to be paid to the claimant called?

The process of reaching an agreement on the amount to be paid to the claimant is termed claim settlement. This process involves the assessment of the claim, gathering necessary documentation, and negotiation between the insurance company and the claimant to arrive at a mutually accepted payment amount.

During claim settlement, the insurance adjuster evaluates the details of the claim, which may include loss assessments, policy limits, and coverage specifics. Once all factors are evaluated, the adjuster communicates an offer to the claimant, leading to discussions that can finalize the amount payable. Agreement signifies that both parties accept the terms established, which typically closes the claim.

In contrast, other options refer to different aspects of the claims process. Claim investigation involves gathering evidence and information regarding the circumstances surrounding the claim. Claim dispute emerges when there is disagreement on the claim’s validity or amount. Claim resolution is a broader term that can encompass both settlement and dispute processes, but it doesn’t specifically denote the final agreement on payment. Thus, claim settlement is specifically focused on finalizing the amount payable to the claimant.