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Explaining Evaluation & Settlement   

https://zalma.com/blog

Case evaluation is necessary to the efficient operation of a third party  liability claims department.  

The evaluation should be completed as soon as reasonably practical after  the completion of a thorough investigation. A quick resolution and  payment of the claim will result in a lower amount of settlement with  the claimant and lower expenses incurred by the insurer.  It should be the goal of every claims adjuster to pay the deserving  claimant every dollar owed as soon as possible. 

This goal should be  tempered by the need to preserve the assets of the insurer and the  insured. It is axiomatic that a liability claim can be settled for less  before suit is filed than after.  Settlement is favored by the law, and by insurers, claimants, and  insureds. Every effort should be made to resolve the claim before  litigation begins.  The adjuster must learn to quantify these damages in order to reasonably  evaluate the exposure faced by the insured and, simultaneously, the  insurer. Sources to help quantify this type of subjective damages  include:  jury verdict research (publishers provide the adjuster with the  historical and current values juries put on the same type of injury in  the same jurisdiction); the records of the insurer on the amounts paid to settle similar claims  in the same jurisdiction; the experience of the individual adjuster: his or her knowledge of the  amounts needed to settle claims in his or her location; and the experience of the mediator or settlement conference judge.  

\\xa9 2021 \\u2013 Barry Zalma  

Barry Zalma, Esq., CFE, now limits his practice to service as an  insurance consultant specializing in insurance coverage, insurance  claims handling, insurance bad faith and insurance fraud almost equally  for insurers and policyholders.  He also serves as an arbitrator or mediator for insurance related  disputes. He practiced law in California for more than 44 years as an  insurance coverage and claims handling lawyer and more than 54 years in  the insurance business.  He is available at http://www.zalma.com and zalma@zalma.com.