insurance settlement
There are several truisms that people must understand about big insurance and their malicious, profit driven motivations. It’s all just a “big game” to them that they are trying to win. A win is maximizing profits for their shareholders.
Insurance companies do not care about compensating injured victims.
Insurance pay claims because of “leverage” which in other words is exposure to pay more, later. Leverage has little to do with the pain and suffering of the accident victim. Indemnity corporations also pay claims based on a cost / benefit analysis which means- will it cost too much to fight the claim considering the expected payout. Costs include out of pocket expenses, staffing resources as well as their hired gun litigation injury lawyers.
Indemnity companies are most worried about exposure. Exposure means that they could have settled for a small amount and then a judge or jury whacks them for hundreds of thousands of dollars after a car accident jury trial on the merits.
At the end of the day, the most important motivation of big insurance is a ruthless cost benefit analysis of every claim. Sadly such analysis does not include any caring about helping the injured victim.
Insurance company settlements
Liability companies often settle claims with a small policy limit in relation to very high damages even when there is little to no meritorious claim of negligence. If there is no negligence, they should not have to pay, right? But they often pay this claim because it is too costly to litigate. They do this because it just is not worth their trouble and the expense of litigating the cause of action.
But if you take the same accident with the same amount of damages (very high) and you change two factors (their insured is 100 percent at fault) and the policy limit is high (2 million). Since their insured is at fault and there is clear negligence and enough insurance to pay the claim, shouldn’t the insurance company offer a fair and reasonable settlement? Indemnity companies will make low-ball offers, stonewall the Rhode Island personal injury lawyers, delay the claim and make life difficult for the injured victim.
“The countrywide average auto insurance expenditure rose 3.3 percent to $841.23 in 2013 from $814.63 in 2012, according to a January 2016 report from the National Association of Insurance Commissioners. In 2013 (the latest data available), the average expenditure was highest in New Jersey ($1,254.10), followed by the District of Columbia ($1,187.49), and New York ($1,181.86). To calculate average expenditures the National Association of Insurance Commissioners (NAIC) assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages.” Insurance Information institute, Auto Insurance COSTS AND EXPENDITURESsee also: Insurance fact Book
Legal Notice per Rules of Professional Responsibility:
The Rhode Island Supreme Court licenses all lawyers and attorneys in the general practice of law, but does not license or certify any lawyer / attorney as an expert or specialist in any field of practice such as mesothelioma lawsuits. While this firm maintains joint responsibility, most cases of this type are referred to other attorneys for principle responsibility.
The post The Malicious Motivations Behind Insurance Company Settlements appeared first on Slepkow & Slepkow Associates INC..