Which statement accurately describes a part of the appraisal process?

The appraisal process in insurance claims is designed to resolve disputes regarding the amount of loss or damage covered by the policy. This particular option accurately describes a crucial step in the appraisal process where both the claimant and the insurer are involved in the selection of appraisers. Each side selects an appraiser, who evaluates the damage and provides an assessment. Following this step, those two appraisers then typically select an umpire if they are unable to agree on the findings. The umpire serves as an impartial third party who can help to finalize the determination if the appraisers’ opinions differ significantly.

This method ensures that both parties have an equal opportunity to present their cases and input into the appraisal process, thus fostering fairness. The involvement of a neutral third party (the umpire) also aids in reaching a resolution, which is vital for maintaining trust in the insurance claims handling process.

Other statements might describe different aspects of appraisal but do not capture the collaborative initiation of the appraisal phase as effectively. The role of the appraisers and the umpire is a fundamental feature of the appraisal process, ensuring that decisions are reached collaboratively rather than solely through unilateral judgments.