Georgia Adjuster Practice Test

Which of the following is NOT a claim settlement option for liability claims?

1. General damages

2. Special damages

3. Contested excessive claims

4. Policyholder negotiation

The correct answer is: Contested excessive claims

In the context of liability claims, the options for claim settlement typically encompass various categories of damages or negotiation strategies. General damages refer to compensation for non-economic losses, such as pain and suffering, while special damages pertain to quantifiable economic losses, such as medical bills or lost wages. Policyholder negotiation involves discussions between the policyholder and the insurer regarding the settlement amounts or terms of the claim. Contested excessive claims, however, are not a standard claim settlement option. Instead, this term implies that there is a dispute regarding the amount being claimed, specifically that it is perceived as excessive. In such cases, the claim is under contention, indicating that the parties are not yet in agreement or that the claim is being challenged. Therefore, it does not represent a proactive method for settling a claim, unlike the other choices, which facilitate resolution through established avenues.