Who appoints the umpire if appraisal deadlock occurs?

Study for the New Jersey Property and Casualty Insurance Test. Enhance your knowledge with flashcards and practice questions. Gain confidence for your exam!

Multiple Choice

Who appoints the umpire if appraisal deadlock occurs?

Explanation:
When appraisal results in a deadlock, the umpire is appointed by the court. In this process, the insured and insurer first each select an appraiser who try to agree on the amount. If they cannot reach an agreement, they choose a disinterested umpire to break the tie. If they still can’t agree on an umpire, a court of competent jurisdiction steps in to appoint one. The combined determination of the appraisers and the umpire then sets the amount payable under the policy.

When appraisal results in a deadlock, the umpire is appointed by the court. In this process, the insured and insurer first each select an appraiser who try to agree on the amount. If they cannot reach an agreement, they choose a disinterested umpire to break the tie. If they still can’t agree on an umpire, a court of competent jurisdiction steps in to appoint one. The combined determination of the appraisers and the umpire then sets the amount payable under the policy.

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