In casualty insurance, what is a method used when the insured and insurer cannot agree on how to settle a claim?

In casualty insurance, when the insured and insurer cannot reach an agreement on how to settle a claim, the most applicable method is often included in the context of an arbitration process or similar resolution method, rather than the options provided. While option B refers to errors and omissions coverage for an agency, which is crucial for protecting against negligence or mistakes during the provision of services, it does not directly relate to the resolution of claims disputes between the insurer and insured.

On the other hand, self-insured retention (found in option D) is more relevant in this context. This concept involves the insured retaining a portion of the risk before the insurer's coverage kicks in. In situations where there is a disagreement over claim settlement, the presence of a self-insured retention can influence negotiations, as it reflects the financial responsibility the insured accepts before insurance benefits become effective.

Understanding the methods available for claim disputes is essential for navigating resolutions effectively. The focus should be on identifying which mechanisms can facilitate agreement, rather than solely on coverage types or conditions that do not address claim settlement processes directly.