Which alternative dispute resolution technique involves a neutral third party?

Study for the Public Adjuster Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Mediation is a form of alternative dispute resolution (ADR) that specifically involves a neutral third party. In mediation, this neutral facilitator helps the parties in dispute communicate and negotiate with the goal of reaching a mutually acceptable agreement. The mediator does not make decisions for the parties or impose solutions, but rather guides the discussion, assists in identifying issues, and encourages collaboration and understanding between the disputing parties.

This technique is particularly useful in resolving conflicts in an amicable manner, allowing both parties to retain control over the resolution process and outcome. It contrasts with other dispute resolution methods, such as unilateral negotiation, where one party proposes terms without third-party involvement, or claim consolidation and insurance termination, which do not inherently involve a neutral party mediating between disputing sides.

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