An agreement to adjust the value of a claim before a dispute arises is an example of which process?

The process described in the question, where parties agree to adjust the value of a claim before any dispute arises, aligns with the concept of appraisal. In the context of insurance and adjuster's practices, appraisal is a specific procedure often outlined in insurance policies that allows for a third-party appraisal of the claim when the insurer and the policyholder disagree on its value.

The appraisal process typically involves both parties selecting an appraiser. If they cannot reach an agreement on the value of the claim, each party's appraiser provides an estimate, and a third appraiser may be brought in to help resolve the discrepancy. The primary purpose of this process is to facilitate a resolution in a more formalized and efficient way than litigation, minimizing the need for court involvement.

While negotiation, litigation, and settlement are all relevant terms in the claims process, they do not specifically refer to the pre-dispute agreement to determine value. Negotiation generally involves discussions to reach a mutual agreement but doesn't inherently include the formal appraisal procedure. Litigation refers to the legal process of resolving disputes through the court system, and settlement typically occurs after a dispute has arisen and is focused on agreeing on terms to resolve ongoing disputes. Thus, the correct context of adjusting the value of a claim before a dispute