What does alternative dispute resolution (ADR) refer to in the context of third-party disputes?

Alternative dispute resolution (ADR) refers specifically to processes used to settle disputes outside of traditional court litigation. It encompasses methods such as mediation, arbitration, and negotiation, and aims to provide a more efficient and cost-effective means of resolving disagreements. In the context of third-party disputes, ADR offers parties the opportunity to resolve their issues amicably and often quicker than through the formal court system. This approach can reduce the adversarial nature of disputes and lead to mutually satisfying outcomes without the need for lengthy legal proceedings.

The other options do not accurately reflect the nature of alternative dispute resolution. A formal court process is indeed litigation, which is the opposite of what ADR seeks to achieve. Rehabilitation support is unrelated to dispute resolution, as it usually pertains to assisting individuals in recovery from injury or illness. Similarly, insurance fraud investigations focus on detecting and managing fraudulent activities within insurance claims, and not on resolving disputes between parties.