Arkansas Insurance Adjuster Practice Exam

How are mediators' fees managed in disputes?

1. Taken from the settlement amount

2. Paid by the insurance company

3. Paid by a statewide mediation pool

4. Split by all involved parties

The correct answer is: Split by all involved parties

In disputes where a mediator is involved, mediators' fees are typically split by all parties involved. This is because the mediator is considered a neutral third party and it is fair for all parties to share in the cost of their services. Option A, taken from the settlement amount, is incorrect as the settlement amount is typically paid out to the parties involved in the dispute, not used to cover fees. Option B, paid by the insurance company, is incorrect as not all disputes involve insurance and the responsibility of paying fees should not fall solely on the insurance company. Option C, paid by a statewide mediation pool, is incorrect as not all states have mediation pools and even if they do, it is not always the responsibility of the pool to cover fees. Option D is the most appropriate option as it distributes the cost of fees among all parties involved in the dispute.