Mediation
Definition
A voluntary negotiation process where a neutral mediator helps you and the insurance company reach a settlement agreement. Unlike arbitration, the mediator doesn't make a decision.
Real-World MVA Example
After months of failed negotiations, you and the insurer meet with a mediator who helps both sides find middle ground, resulting in a $95,000 settlement.
Related Terms in Settlement & Resolution
Arbitration
A private dispute resolution process where a neutral third party (arbitrator) hears both sides and makes a binding or non-binding decision, without going to court.
Demand Letter
A formal letter your attorney sends to the insurance company outlining your injuries, treatment, losses, and the amount of compensation you're demanding to settle.
Lump Sum Settlement
A single, one-time payment that resolves your entire claim. Once you accept it, you cannot come back for more money, even if your injuries get worse.
Settlement
An agreement between you and the insurance company (or at-fault party) to resolve your claim for an agreed-upon amount of money, without going to trial.
Structured Settlement
A settlement paid out in periodic installments over time (monthly, annually) rather than as a single lump sum. Often used for large settlements involving long-term care needs.
Verdict
The jury's final decision in a trial, determining whether the defendant is liable and how much compensation you should receive.
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