Which of the following is a Non-Adjudicative option of Alternative Dispute Resolution (ADR)?

Study for the CII Certificate in Insurance - Insurance Claims Handling Process (IF4) Test. Prepare with multiple choice questions and expand your knowledge on insurance industry standards. Get ready for success!

Mediation is a non-adjudicative option of Alternative Dispute Resolution (ADR) because it involves a neutral third party who facilitates communication between the disputing parties but does not make binding decisions on their behalf. In mediation, the goal is to assist the parties in reaching a mutually agreeable solution, allowing them to retain control over the outcome. This process emphasizes collaboration rather than confrontation, distinguishing it from adjudicative options like arbitration, lawsuits, and litigation, where a third party makes a binding decision based on the arguments presented.

In contrast, arbitration, while also a form of ADR, is adjudicative as it involves a binding decision made by an arbitrator based on the evidence and arguments from both parties. Lawsuits and litigation refer to formal court processes where a judge or jury determines the outcome, which is inherently adversarial and not in line with the cooperative spirit of mediation. Thus, mediation uniquely represents a non-adjudicative approach to resolving disputes within the ADR framework.

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