The appraisal process is a method used to resolve disputes over the value of a loss between an insured party and their insurer. In this scenario, selecting appraisers who can then submit their differences to an impartial umpire is a critical aspect of ensuring a fair and unbiased resolution to the disagreement. When each party appoints an appraiser, these appraisers evaluate the loss independently; if they cannot reach an agreement on the value, the umpire acts as a neutral third party to decide the amount.
This system is designed to mitigate conflicts and bring about a resolution based on professional assessments rather than emotions or assumptions. An impartial umpire helps provide balance and objectivity, allowing both Adam and the insurer to have confidence in the dispute resolution process. This method is particularly effective in situations where subjective interpretations of damage or loss amounts lead to heightened disagreements.
The other options do not align with the traditional appraisal process, as they either suggest an incomplete resolution strategy or impose unilateral decisions that could undermine fairness. Thus, having appraisers submit their findings to an impartial umpire represents the most structured and equitable approach to resolving their differences regarding the loss amount.