In this issue
Insurers Try to Settle Cases as Soon as Possible
Do not cash that
Closing claims early
saves the insurance company money
General damages are
less in the first few weeks
- How to respond to their offer
Hello!! Welcome to the July edition of
Settlement Central’s Newsletter. We are pleased to
share this newsletter with you, as our business is
helping people get satisfactory settlements for their
personal injury claims.
In this issue, we will discuss why insurance
adjusters try to settle claims as quickly as possible,
and what you should do about their offer.
As always, we will post our articles on our website
as they are sent out in the Settle-It-Yourself
Newsletter. Our readers will have a rich resource
available to them that should aid them much more than
the Internet advice of some so-called “financial
experts”, who have never had to encounter the
courtroom-face of the insurance industry. Our
hands-on battles with the insurance companies translate
into useful and accurate information for our readers.
Insurance Adjusters Try to Settle Cases as Soon as
The insurance industry has
long known three advantages to closing claims before an
injured person has had time to experience a full season
of pain, treatment, healing, re-injury through normal
life activities, and pain again.
First, closing claims
early saves money because the injured person is not
compensated for any medical/therapeutic treatments after
the date of settlement. After you settle your claim, all
further treatment is your responsibility. Except
in specific, unusual situations, you cannot go back and
re-open a settlement - when you cash the check, you
agree to close your claim in all aspects.
The full extent of most
injuries is not known immediately, because the injured
person has to undergo some of the wear and tear of
everyday life, including the pounding his body will
receive from a day's work. Even jobs that appear not to
be physically demanding can be hard on an injured body.
For example, have you ever
stood all day with few breaks, as a jewelry salesperson
does? Or sat all day at a computer, as a secretary or
phone service center employee does? Many jobs will
interfere with healing, and you have no way to know how
your body will respond until you have experienced
sufficient physical exposure to load-test the scar
tissue as you heal.
companies like to settle early because the general
damages - claims for pain and suffering - are always
minimal in the first few weeks but continue to grow with
continued medical/therapeutic care over the months.
Therefore, the insurance adjuster will try to settle
before your claim merits a larger pain and suffering
element. This makes good sense for the insurance
company. A claim that is still active after 12 months,
with an injured claimant still undergoing treatment,
will settle for a lot more pain and suffering money than
a claim that is settled after a month or two of
Third, the insurance
industry historically makes more on its long-term
investments than it does in net profit from its
insurance products. Insurance companies are required to
hold funds in reserve based upon the adjusters' and
supervisors' best guestimates of the maximum each claim
will cost, plus a little extra just in case. Since the
reserves historically exceed the amounts actually paid
on the claims, paying claims quickly frees up the
difference between the estimate and the actual payout
for more long-term investments, which earn more income
than the reserve funds earn. Also, as mentioned above,
claims paid early are paid less, so even more of the
reserve fund can turn into income-producing investments
for the insurance company.
more on this subject, click on the link below.
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will find us to be an excellent source for your own
personal injury needs!!
Publisher, Settle it Yourself Newsletter
SettlementCentral.Com has a wealth of information and
special tips for members who wish to arm themselves with
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effective ideas on how to approach a company to ensure a
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SettlementCentral.Com, Inc. is a Washington corporation
providing general educational information, online, to
personal injury victims throughout the United States on
how to manage their own personal injury claims through
the settlement process—from gathering the necessary
information (evidence) to submitting claims and demand
letters, through engaging in successful personal injury
settlement negotiations with insurance companies. Our
online instructions and self-help forms and letters are
designed to make for easy insurance claims settlements
in the areas of auto accidents, pedestrian accidents,
dog bites, vicious animal bites, premises liability, and
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