Which of the following is considered an adjudicative option in ADR?

Adjudication is indeed recognized as an adjudicative option in Alternative Dispute Resolution (ADR). This process involves a neutral third party who reviews the evidence presented by both sides and makes a binding decision to resolve the dispute. This distinguishes adjudication from other ADR processes like mediation or negotiation, where the outcomes are not necessarily binding and focus more on facilitating communication between parties rather than making a decision.

In the context of ADR, adjudication is formal in nature and aims at resolving disputes by imposing a solution that both parties must accept. This is particularly pertinent in insurance claims handling, where clear resolutions are often necessary to determine liability and compensation.

Mediation and negotiation, while essential parts of the dispute resolution landscape, are not adjudicative because they rely on the parties coming to a voluntary agreement rather than having a decision imposed upon them. Informal settlement similarly suggests a non-binding resolution process that lacks the formal structure of adjudication. Thus, adjudication stands out as the clear adjudicative option in the provided choices.