If the carrier does not respond to this appeal, you may then start litigation. If the carrier reconsiders your claim, and again denies it, you have to appeal again. Thereafter, depositions may take place. A deposition is where each party interviews the other party and asks questions regarding the subject claim. The testimony of each person is recorded for future use, and the transcript is ultimately sworn to before a notary public.
Some districts mandate that cases with a relative low value be arbitrated prior to trial.
An arbitration is akin to an informal trial, and the court selects the arbitrator. Each side calls witnesses to testify and submits proof to support their respective position. The arbitrator will make a decision, and if either party is not satisfied with that decision, that party may request a trial de novo. The request for a trial de novo must be done within a specified time, and the parties should acquaint themselves with the time restraint in the court where the case is venued. If the case goes to trial, it will be before either a United States district court judge, or a magistrate judge.