SettlementCentral.Com Newsletter

Issue 12

In this issue 

Why Insurers Try to Settle Cases as Soon as Possible

  • Do not cash that check!
  • Closing claims early saves the insurance company money
  • General damages are less in the first few weeks
  • How to respond to their offer

Settle-It-Yourself Newsletter

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.


Why Insurance Adjusters Try to Settle Cases as Soon as Possible

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.

Second, insurance 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 treatment.

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.

For more on this subject, click on the link below.
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Thank you for your interest in our site; we hope you will find us to be an excellent source for your own personal injury needs!! 

Jeanine Steele
Publisher, Settle it Yourself Newsletter

SettlementCentral.Com has a wealth of information and special tips for members who wish to arm themselves with the best advice for dealing with insurance companies.  Our Negotiation section is filled with fresh and effective ideas on how to approach a company to ensure a successful settlement of your case.

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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 slip and fall accidents.

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