See the full video at https://rumble.com/vo5vhm-the-insurers-duty-to-the-insured-when-faced-with-bad-facts-and- serious -inju.html? mref = 6zof & mrefc = 2 and at https://youtu.be/mdSCkmAikSw
Some lawsuits are based on clear liability and terrible facts and damages that force the parties involved to resolve the matter as quickly as possible. In such cases, it can be expensive to defend and reimburse the insured and can easily exceed the available insurance limits. If the adjuster's reaction to the factual pattern is mistrust or horror, and his or her first impulse is to exchange the claim for another adjuster, this is a sign that the matter needs to be resolved quickly.
Bad facts and bad injuries become more expensive over time. These cases should not be defended aggressively but should rather be handled with empathy and generosity so that they can be resolved within the limits available from the insured's insurance.
The worst of all can be an insured who admits he fell asleep on the wheel, crossed the double line and an island and hit a small Ford Escape straight against and turned a paraplegic into a 40-year-old widower, father of four minor children who all suffered from Down syndrome and needed constant care. The insured has an insurance with only 500,000 USD in limits. With the recognition of liability and the extent of the damage, every effort must be made to pay the limits as soon as possible. A release on behalf of the insured would be useful, but the adjuster should not make the damaged application before the limit has been paid, even if it has to be paid unconditionally.
Bad facts usually result in bad law. It is inappropriate to risk that the insured suffers an uninsured loss just to give the insurer the opportunity to create a legal precedent that is favorable to the insurer. The fact that more judgments are handed down than is overturned should dampen the desire to appeal.
An insurer should never experiment if there is a possibility that the insured could incur an uninsured loss unless the insurer is willing to guarantee payment of all judgments regardless of the insurance's liability limits. Otherwise, the insurer will probably be found in breach of the duty of faith if an attempt is made to change a law that benefits the insurer over its entire list of activities and if it leads to an unfavorable judgment against the insured in excess. of policy boundaries.
If the insurer wishes to create a precedent, it should enter into a written agreement with the insured to take the matter to court and promise the insured that it will compensate him or her regardless of the judgment (regardless of whether it is within the insurance limits or not) and will reimburse all his or her expenses.
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to the position of insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders.
He also acts as an arbitrator. insurance-related disputes. He practiced law in California for more than 44 years as a lawyer for insurance coverage and claims management and more than 54 years in the insurance industry.
Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.
He is available at http://www.zalma.com and email@example.com. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claimants to become professionals in insurance claims.
Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4