AIC 32 LIABILITY CLAIMS ACTUAL EXAM
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Alternative dispute resolution (ADR) . Answer: Procedures to help
settle disputes without litigation, including arbitration, mediation, and
negotiation
◉Mediation . Answer: An alternate dispute resolution method by which
disputing parties use a neutral outside party to examine the issues and
develop a mutually agreeable settlement.
◉Steps of the Mediation Process . Answer: 1. Selecting the mediator
2. Preparing for mediation
3. Making opening statements
4. Presenting evidence
5. Negotiating
6. Concluding the mediation
, ◉Claims not suitable for mediation- . Answer: Claims involving
coverage disputes, those in which one party is adamant that is gets its
day in court, or those involving fraud
◉Caucus . Answer: A private meeting with the mediator away from the
opposing party
◉Mediator . Answer: A person who acts as a referee to the parties in a
dispute and can even assist in negotiating issues such as chiropractic and
medical treatment fees
◉Telemediation . Answer: When the mediator works with the parties in
dispute to help then facilitate a negotiation over the phone. This is useful
only when a few issues are in dispute
◉Arbitration . Answer: An alternative dispute resolution method by
which disputing parties use a neutral outside party to examine the issues
and develop a settlement, which can be final and binding
◉Binding arbitration . Answer: Requires the parties to an arbitrated
dispute to accept the arbitrators decision
◉Non-binding arbitration . Answer: A practice in which neither party is
forced to accept the arbitrator's decision; however, the decision provides
the winner with leverage for future negotiations
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Alternative dispute resolution (ADR) . Answer: Procedures to help
settle disputes without litigation, including arbitration, mediation, and
negotiation
◉Mediation . Answer: An alternate dispute resolution method by which
disputing parties use a neutral outside party to examine the issues and
develop a mutually agreeable settlement.
◉Steps of the Mediation Process . Answer: 1. Selecting the mediator
2. Preparing for mediation
3. Making opening statements
4. Presenting evidence
5. Negotiating
6. Concluding the mediation
, ◉Claims not suitable for mediation- . Answer: Claims involving
coverage disputes, those in which one party is adamant that is gets its
day in court, or those involving fraud
◉Caucus . Answer: A private meeting with the mediator away from the
opposing party
◉Mediator . Answer: A person who acts as a referee to the parties in a
dispute and can even assist in negotiating issues such as chiropractic and
medical treatment fees
◉Telemediation . Answer: When the mediator works with the parties in
dispute to help then facilitate a negotiation over the phone. This is useful
only when a few issues are in dispute
◉Arbitration . Answer: An alternative dispute resolution method by
which disputing parties use a neutral outside party to examine the issues
and develop a settlement, which can be final and binding
◉Binding arbitration . Answer: Requires the parties to an arbitrated
dispute to accept the arbitrators decision
◉Non-binding arbitration . Answer: A practice in which neither party is
forced to accept the arbitrator's decision; however, the decision provides
the winner with leverage for future negotiations
