Which statement is true regarding the appraisal process in insurance claims?

The appraisal process in insurance claims is correctly identified as requiring mutual agreement between the insurer and the insured. This provision is essential because both parties need to come to a consensus regarding the appointment of appraisers and the nature of the dispute being appraised. The appraisal process is designed to facilitate a fair evaluation of the claim by allowing both parties to present their perspectives, typically involving independent appraisers.

This mutual agreement ensures that both the insurer's and the insured's interests are fairly represented during the process, fostering trust and cooperation. It also helps to avoid unilateral decisions that could lead to further disputes or dissatisfaction with the outcome. In essence, the appraisal serves as a collaborative mechanism to resolve disagreements over the value of a claim rather than being dictated by one party alone.