North Carolina Adjuster Practice Exam 2026 - Free Adjuster Practice Questions and Study Guide

The term for the legal process where claim disputes are legally settled is litigation. This process involves the formal judicial resolution of disputes, typically taking place in a court setting. In litigation, the parties involved present their cases, along with evidence and legal arguments, to a judge or jury who then makes a binding decision.

Litigation is often pursued when other methods of dispute resolution, such as negotiation or mediation, have failed to produce a satisfactory outcome. It is characterized by its structured and procedural nature, adhering to legal rules and statutes governing courtroom conduct.

Other terms, such as negotiation and mediation, refer to alternative dispute resolution methods that aim to resolve conflicts outside of the courtroom, but they do not carry the same legal weight or procedural rigor as litigation. Settlement generally refers to an agreement reached between parties to resolve a dispute, often before litigation progresses, but it is not itself a legal procedure. Ultimately, litigation is the most formalized and legally binding method for resolving claim disputes.