In appraisal practice, which element indicates the authorization to settle claims?

The correct answer is Draft Authority, which signifies the formal permission granted to an individual or organization to negotiate and finalize the terms of a claim settlement. In appraisal practice, having Draft Authority is crucial as it empowers the designated party to make binding decisions and execute agreements on behalf of the entity involved in the appraisal process. This element ensures that there is a clear mandate allowing someone to act in the interests of the party submitting the claim, facilitating the efficient handling of disputes or settlements.

Proof of Claim refers to a document submitted to verify the legitimacy of a claim but does not indicate authority to settle it. A Settlement Agreement is the end result of negotiations and establishes the terms for resolving a claim, but it does not itself grant anyone the authority to reach that settlement. Claim Authorization is a broader term, often including the permission to initiate a claim rather than specifically relating to the authority to settle. Draft Authority uniquely captures the essence of authorization for settling claims, making it the most appropriate choice.