Many homeowners policies include an appraisal provision that describes a dispute resolution process involving two appraisers and an umpire. Which one of the following statements concerning this appraisal process is true?

Many homeowners policies include an appraisal provision that describes a dispute resolution process involving two appraisers and an umpire. Which one of the following statements concerning this appraisal process is true?

A. The amount of a loss in dispute is established if both appraisers agree on the amount.

B. Only the insured can demand an appraisal in the event of a disagreement.

C. The appraisal process determines whether coverage applies to a loss.

D. The insurer pays all expenses associated with the appraisal process.

Answer: A