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Serious Injuries & Clear Liability Require Quick and Thorough Action   

https://zalma.com/blog

Some lawsuits are based on clear liability and terrible facts and  injuries that compel the parties involved to settle the case as quickly  as possible. In such cases defending and indemnifying the insured is  liable to be costly and could easily exceed the available policy limits.  If the adjuster\\u2019s reaction to the fact pattern is disbelief or horror,  and his or her first impulse is to trade the claim to another adjuster,  these are signs that the case must be settled quickly.  Bad facts and bad injuries get more expensive with time. These cases  should not be aggressively defended but should rather be handled with  empathy and generosity so that they can be resolved within the limits  available from the insured\\u2019s policy.  The worst of all cases could be an insured who admits he fell asleep at  the wheel, crossed over the double line and an island and struck a tiny  Ford Escape head on and rendered a paraplegic a 40 year old widower  father of four minor children all of who suffered from Down Syndrome and  needed constant care. The insured has a policy with only $500,000 in  limits. With the admission of liability and the extent of the injuries  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 injured file suit before paying the limit, even if it must  be paid without condition.  Bad facts usually result in bad law. It is improper to take a chance on  the insured facing an uninsured loss just to give the insurer the  opportunity to create a legal precedent favorable to the insurer. The  fact that more trial court judgments are affirmed than are reversed  should temper the desire to file an appeal.  An insurer should never experiment if there is any potential that the  insured could incur an uninsured loss unless the insurer is willing to  guarantee payment of any judgment regardless of the policy\\u2019s liability  limits. Otherwise, the insurer will probably be found in breach of the  duty of good faith if an attempt is made to change a law that will  benefit the insurer over its entire book of business, and if it results  in an adverse judgment against the insured in excess of policy limits.  If the insurer wants to make a precedent it should enter into a written  agreement with the insured to take the case to trial and promise the  insured that it will indemnify him or her regardless of the verdict  (whether within policy limits or not) and will reimburse all of his or  her expenses.  

\\xa9 2021 \\u2013 Barry Zalma