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CPCU 530 CHAPTER 6 QUESTIONS WITH CORRECT ANSWERS

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CPCU 530 CHAPTER 6 QUESTIONS WITH CORRECT ANSWERS

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Mediation
(6.11)


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An alternative dispute resolution (ADR) method by which disputing parties
use a neutral outside party to examine the issues and develop a mutually
agreeable settlement.


Mediation is nonbinding

Mediators are often experienced trial lawyers or retired judges




Arbitration
(6.10-6.11)


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, Arbitration involves taking a dispute to an impartial third party for a
decision that the parties agree will be final and binding
- Major means of handling contracts, labor-management relations, and
INSURANCE

Many insurance policies specifically provide for arbitration
- insurers use special arbitration agreements to allocate costs of
settlements when coinsurers are involved and to resolve disputes resulting
from overlapping coverages
- use of arbitration has increased under no-fault auto statutes


Uniform Arbitration Act and the Federal Arbitration Act provide specific
remedies if one party refuses to arbitrate

American Arbitration Association developed a procedure for selecting an
arbitrator
- each party gets a list of proposed arbitrators, must select several w/in 10
days, association appoints an arbitrator,
- OR each party can appoint an arbitrator and those arbitrators can appoint
a third arbitrator

Witnesses can be called but rules of evidence and procedure are not
required


Parties have limited grounds for appealing an arbitrator's decision




The purpose of discovery is for lawyers on both sides to gather as much info as
possible about all allegations and evidence the parties might present
(6.3)


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Lawyers can use pretrial evidence to challenge the evidence presented at
trail.

Discovery can sometimes lead to settlement.

, Administrative agencies rulemaking function
(6.13-6.14)


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- The Administrative Procedure Act (APA) prescribes the procedure for
administrative agency rulemaking at the federal level

- States follow the Model State Administrative Procedure Act (MSAPA)
which requires agencies to adhere to these 3 steps:
1. Publish a notice of intent to adopt a regulation
2. Provide opportunity for public comment
3. Publish the final regulation

- Federal agencies publish notices of proposed regulations in the weekly
Federal Register. States have similar publications. Notice in one of these
official publications suffices as official notice to all interested parties


- If the proposed regulation is controversial, the examiner can require
advance registration of those who will testify

- A rule usually becomes effective 30 days after publications. However,
agencies can publish emergency rules with immediate effective dates when
necessary for public health and welfare.




Class action (class action lawsuit)
(6.26)


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