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Page 3
and client have been firmly established.
Once you are completely familiar
with all the facts of the case and your client's injuries
have been defined, you will be ready to negotiate a
settlement. At that time you must get your client's
authority to settle for the value you place on his case.
Meet with your client in person to get his authority to
demand this amount in settlement. This exercise will
have the added benefit of forcing you to articulate the
reasons for your evaluation. It will crystallize your
thoughts and you may well be rewarded with new insights
into the case.
Working with the Claims Ajuster
Because most cases are settled
without suit being filed, you will usually be dealing
with an insurance company claims adjuster rather than an
opposing attorney. Generally speaking, the more experienced
adjusters will be assigned to the larger cases. Negotiations
with the claims adjuster may well continue after suit has
been filed, even though a defense attorney has entered the
case. Protocol requires that you get permission from the
defense counsel to deal directly with the adjuster.
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Insurance companies are not charities. It is their business
to earn a profit. They do so by collecting premiums and
denying claims. Because a claim cannot be paid at the
time of the accident that leads to it, an amount called a
reserve, representing what the company expects to pay on
that claim at a later date, must be set aside when the
claim is first made.
The estimated value of the claim is based on information
gathered by the insurance adjuster. The reserve is an
accounting device - a bookkeeping entry - but once
established it is hard to change. Therefore, you want to
work hard to have the reserve set as high as possible.
As will be discussed later, you may help the adjuster do
exactly that in a number of ways.
Insurance claims adjusters are entitled to the same
respect and courtesy you would expect them to give you.
All too often, plaintiffs' lawyers behave as though all
wisdom regarding cases resides only with them. When a
claims adjuster disagrees, some lawyers become
argumentative, even abusive. Adjusters have different
personalities and values, and the worth they place on
your case will be affected by their attitudes. Why offend
them? Keep your ego out of the case. Adjusters must
justify the amount of any settlement to their superiors.
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