Insurance company settlement techniques to watch out for

Aspects of claims frequently questioned by insurance companies

Insurance policy defenses and coverage issues

How to communicate with insurance companies

Duties owed by insurance companies

How to deal effectively with adjusters

How insurance companies process claims

Adjusters’ most popular negotiating techniques

How reserves and indexing systems work

What insurance companies look for in their investigations

How insurance companies seek to limit coverage

“Adjusters will frequently offer two-thirds or one-half of the demand received from the plaintiff's attorney” Section 240

“A local claims manager has about $50-100,000 discretionary settlement authority. He will usually extend $20-30,000 discretionary settlement authority to his claims supervisors, and $10-15,000 to the office claims staff.” Section 240

The prudent plaintiff's attorney will ask the insurance company point-blank, in the very beginning stage of the relationship, “Are there any coverage issues? Are there any liability issues?” Section 702.1

“Avoid Monday mornings and Friday afternoons as this is the busiest time for adjusters. These are the times they will be least receptive to attorneys’ phone calls or requested meetings.” Section 780

“99% of the plaintiff's attorneys don't know about the supplementary coverages which are due and payable in excess of the policy limits.” Section 240

“A natural trap that many attorneys fall into is to negotiate the value of their case against the policy limits. If the plaintiff was 20% at fault in a comparative fault jurisdiction and policy limits are $100,000, many attorneys will ask for $80,000. They should instead value the case without regard to the policy limits.” Section 740.1

“Nurses in hospitals and clinics keep the best documentation on observed pain of a given patient. Use their notes to screen out phony claims of soft tissue injuries.” Section 240

“An undocumented demand is not worth the paper it is written on. The insurance industry loves all claims documented, and loves paperwork. Why? Because that's the way it has always been done.” Section 702.7

“The general rule of the claims adjusting industry is that 30 days is the usual and customary time limit in which to request an insurance company to respond to a settlement demand. This is because the claims industry is set up on a 30-day diary system.” Section 702.7

“Usually when an attorney puts a time limit of ten to thirty days on his demand letter, the paperwork requirements are set aside, and settlement authority is granted by telephone. The idea is that the paperwork can be done on or after the date the case is settled, rather than before.” Section 240