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Legal Quick Tackes

Insurance Companies 3 friends.... Delay, Deny and Defend!

Dealing with your car insurance company after a crash can be a time-consuming hassle. For many folks, it's the first time they really look at their policy and learn many surprises like rental cars might not be covered. Their insurance company that was so ready to accept the premiums all those years, now is "nickel and diming" you. Now imagine what it's like to deal with the insurance company of a person you don’t know who crashed into your car. However, there are ways to begin to level the proverbial playing field. To do so, you must familiarize yourself with important principles of insurance law which courts and legislators have fashioned over the years for consumer protection.

It is important to remember that insurance adjusters will contact the injured party as soon as possible after an accident. They will present themselves as a friend of the injured person or family of the loved one who was killed. However, their ultimate goal is to settle the case for the least amount possible, before the injured party or family learns of their rights by speaking to an attorney. Their practice is to always tape record these phone calls and to ask questions that might seem innocuous, but are usually one-sided to the benefit of the insurance company. Unfortunately, for some insurance companies their approach is "Delay, Deny and Defend" legitimate claims to maximize their profits. Hence, it is almost always a good idea to speak with an attorney before agreeing to be interviewed or providing any medical and private information.

Responses to Insurer Stonewalling

A common adjuster tactic is stonewalling -- deliberately delaying the settlement of a claim in an effort to persuade a claimant to accept a low offer just to put an end to the frustration. Stonewalling can take many forms, including:

Silence.

This is, perhaps, the most frustrating stonewalling technique. The adjuster simply stops communicating. He does not respond to letters or emails or phone calls.

“I don’t have authority to settle for the amount you have requested.”

It is the nature of an insurance claims department that the adjuster has to get authority to settle from someone higher in the chain of command. If, however, the adjuster makes this claim repeatedly, stonewalling is occurring.

“Your claim is being reviewed.”

Even though no settlement offer has been made, the adjuster offers assurances that the wheels are in motion: The claim is “in committee,” or “being reviewed by the home office,” or “waiting for a supervisor’s approval.” By dangling the carrot of a pending settlement, the adjuster hopes the claimant will continue to wait.

“I need more proof.”

The adjuster has copies of all the medical records and bills, and evidence of the lost wages, but says he needs “additional documentation” of the loss. If no offer is forthcoming, these repeated requests for documentation are a blatant effort to delay payment of the claim.

“I’m just getting up to speed on your file.”

Some insurance companies have a high turnover rate among claims adjusters; some insurance companies routinely move claims files from one adjuster to another. If a new claims adjuster is regularly assigned to the claim, for whatever reason, the effect is to stonewall the claim and delay payment while the adjuster learns the file.

“We can settle all of your claims or none of your claims.”

The adjuster may try to leverage one claim against another. If, for example, a case has both an auto damage claim and a bodily injury claim, the adjuster may refuse to settle the auto claim unless the injury claim is also settled ... right now, for a low amount.

A claimant who encounters one or more of these tactics has a few options:

  • Wait and let the negotiations play out on the adjuster’s schedule for a while longer

  • Challenge the adjuster directly by sending a formal settlement demand

    letter, by certified mail, requesting a response by a set date

  • Enlist the help of a personal injury attorney. Insurance companies have little incentive to settle promptly and fairly with unrepresented claimants, and stonewalling is profitable for the insurance company. It often takes the involvement of an attorney to get the adjuster’s attention and set the

    negotiation wheels in motion.

Not sure if you have a case? Are friends and family telling you to call a lawyer? Are you starting to be suspicious about the insurance adjuster you’re dealing with? Call us or click here to email— we offer free, no-obligation consultations. Have questions? We are happy to talk with you about your situation and your concerns, and how we can help you though this challenging process. It’s easy — just give us a call.

michael phillips