North Carolina Adjuster Practice Exam

The option indicating that the insured can request mediation or arbitration is correct because these are commonly utilized methods for resolving disputes between policyholders and insurance companies. Mediation involves both parties working with a neutral third party to reach a mutually agreeable solution, while arbitration is a more formal process where a neutral party makes a binding decision based on the information presented. Both of these approaches can provide a less adversarial and often more efficient path to resolve claims disputes without resorting to litigation.

Mediation and arbitration also offer a means to reach resolution while preserving the relationship between the insured and the insurer, which is often vital in ongoing business contexts. These methods are typically outlined in the policy agreement or as part of the insurer's procedures for handling disputes, emphasizing their legitimacy and applicability in the claims process. By utilizing these processes, the insured can seek a satisfactory resolution to their grievance without having to engage in protracted legal battles.