What is the process described when two appraisers and an umpire reach a settlement?

The appraisal process is a method used in insurance to resolve disputes related to the amount of a loss. When the insured and the insurer disagree on the value of a claim, they may choose to invoke this process. Under this method, each party selects an appraiser, and the two appraisers then work together to determine the value of the claim. If they cannot reach an agreement, an umpire is brought in to help facilitate a decision, ultimately coming to a settlement that both parties are bound to accept.

This structured approach helps ensure that disputes are resolved fairly and efficiently, utilizing industry expertise to assess the value of the claim based on the specifics of the situation. It is crucial because it enables the claims process to proceed without the need for lengthy litigation, providing a more amicable solution for both parties involved. The other options do not specifically pertain to this particular mechanism of dispute resolution tailored for appraisal scenarios, making the appraisal process the correct choice.