Which one of the following statements about good faith negotiations is correct?

Which one of the following statements about good faith negotiations is correct?



A. Settlement negotiations should begin before the claim is evaluated.
B. Claim representatives can use arbitration clauses to resolve disputes over the settlement amount.
C. Claim representatives are expected to make unrealistic offers when confronted with outrageous demands.
D. Claim representatives should always wait for a demand before presenting an offer to settle.


Answer: B. Claim representatives can use arbitration clauses to resolve disputes over the settlement amount.

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