Defending liability claims through litigation can be a very long and expensive process. Mediation and arbitration are two common forums for settling claims outside the traditional court system. What is the difference between arbitration and mediation?

Defending liability claims through litigation can be a very long and expensive process. Mediation and arbitration are two common forums for settling claims outside the traditional court system. What is the difference between arbitration and mediation?

A. Someone other than the insurer and the claimant decides the case in arbitration.

B. The arbitrator's decision is always binding.

C. Only one insured and one insurer can be involved in arbitration.

D. Solutions are proposed in arbitration to help the parties settle.

Answer: A