bodily injury limit disclosure

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Thu Mar 05, 2009 10:57 pm   Post subject: bodily injury limit disclosure  

My friend was in accident. it was her fault. the other party has hired a lawyer to represent and is pursuing a bodily injury claim. Her insurance has sent her letter asking whether she wants to disclose her limits to the other party.



Should she disclose the limits? What are the pros and cons.



Adjuster is not giving her advice on this. the only thing he says is that if she discloses then other party's lawyer might view it as free flow of info. even if she decides to not disclose the limits it won't harm her prospects and won't hamper adjusters ability to negotiate.

a
New member
Leave a quick message



Joined: 05 Mar 2009
Posts: 1


1.50 Dollars($)

PostPosted: Fri Mar 06, 2009 12:32 am   Post subject:   

Good question as your going to get the two possible answers on this one. Smile



As an adjuster I have no problem whatsoever in releasing policy limit information. Should it change what the claim is worth? If the person has a lower limit like $25,000, I think it just saves a lot of time. That way the attorney does not need to start with a $1,000,000 demand... and the _do_ start with some stupid amount! The attorney can then ask for the lower policy limits but the adjuster is not going to offer them up if he/she feels it's not with that amount. Now, if the insured had high limits, the injury claim was minor and I did not have to tell what the limits were, then I'd probably keep that information to myself.

tcope
Forum Expert
Leave a quick message

tcope
Forum Expert

Joined: 22 Nov 2006
Posts: 5999

Location: Salt Lake City, UT
360.72 Dollars($)

PostPosted: Fri Mar 06, 2009 5:06 am   Post subject:   

Some states would require the responsible driver to disclose his policy limit to the other party , but its optional in the other places. When its said by the adjuster that if she chooses not to disclose her limits it’d harm the prospect of negotiation, IMO she would be better-off by withholding this information from the other party. Under any circumstances, the claimant wouldn’t receive more than the policy limit, but disclosing the information would give their attorney the chance to bargain for maximum payout.


_________________
Register Now to have your Insurance queries solved.
anonymous 12
Guest







PostPosted: Fri Mar 06, 2009 6:34 am   Post subject:   

Well tcope, will it be a good idea that the OP waits for the other party to make their claim? OP can then see if what they claim is more than what their policy can offer and then let the other party know of their policy limit. Will this work?



_________________

AmPmInsure Blog
sil
Community Writer
Leave a quick message



Joined: 30 Sep 2005
Posts: 483


89.48 Dollars($)

PostPosted: Fri Mar 06, 2009 11:20 am   Post subject:   

I see both pros and cons of the idea. Tscope has a really good point when he says they always start with some off the wall amount. Disclosing the polikcy limits may resove a claim faster but when they are disclosed would probaly be more important depending on what side of the fence you are on.

I say this because if the limits were disclosed int he beginning then Joe shmoe could linger out his injuries knowing the piggy bank has lots of available funds.How many injuries are there that a doctor can not prove? Plent y I would imagine. If the world was not so full of frauds this may be a good thing but we all know that is not true. In PA the limits are not diclosed until an injury is proven to be one that is life changing or pretty bad. At the time of settlement once they settle on a policy limit the other insurance company must present the declarations page proving the amount of coverage. I can see how this would keep fraudulent cases from getting out of control.

fireyone
Senior member
Leave a quick message

fireyone

Joined: 07 Jan 2008
Posts: 1986


2.37 Dollars($)

PostPosted: Fri Mar 06, 2009 12:33 pm   Post subject:   

Quote:
If the world was not so full of frauds this may be a good thing but we all know that is not true.




i agree with you fireyone. One thing is likely to happen if she discloses her limit to the lawyer of the second party, lawyer may take undue advantage of the information and he will try to make max out of it.



So it is better to not disclose the limit as Put the ball in other person's court wait n watch.If it is so urgent , law demanding then only disclose it. Arrow


_________________

www.Parthaconsultancy.info



Its my personal website.
amit
Senior member
Leave a quick message

amit

Joined: 25 Jan 2009
Posts: 365


8.19 Dollars($)

PostPosted: Fri Mar 06, 2009 4:17 pm   Post subject:   

As a long time adjuster, I have always held the opinion to keep limits under wraps, unless (as tcope posted) the limits are low...you'd be surprise how 'fast' people recover and stop treating with PT or Chiro once they find out there are low limits... Rolling Eyes I have never devulged high limits unless the claim/injury is also large...IMO if the injury and limits are pretty close then let the cat out of the bag other wise, 'mum's the word..



_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Sat Mar 07, 2009 1:09 am   Post subject:   

Thats exactly what I am talking about. The lower the limits the less the insurance company would pay out on medical payments too. I have seen so many people doctor for a couple years just at a chance for htting the jack pot. I see the point of disclosing low limits. It would sure wrap up a small claim quickly.

fireyone
Senior member
Leave a quick message

fireyone

Joined: 07 Jan 2008
Posts: 1986


2.37 Dollars($)

PostPosted: Fri Apr 09, 2010 9:16 pm   Post subject: limit disclosure  

some states mandate disclosure by statute and others don't. I any event, I wouldn't disclose unless required to do so and you will need your insured's permission to disclose. The main reason plaintiff attorneys aks for disclosure is to get an early jump on a UIM claim or setup an adjuster for bad faith with a demand just under limits on a claim well in excess of limits.


_________________
Register Now to have your Insurance queries solved.
master rep
Guest







PostPosted: Fri Apr 09, 2010 9:16 pm   Post subject: limit disclosure  

some states mandate disclosure by statute and others don't. I any event, I wouldn't disclose unless required to do so and you will need your insured's permission to disclose. The main reason plaintiff attorneys aks for disclosure is to get an early jump on a UIM claim or setup an adjuster for bad faith with a demand just under limits on a claim well in excess of limits.


_________________
Register Now to have your Insurance queries solved.
master rep
Guest







All times are GMT
Page 1 of 1


Get free auto insurance quote
State Auto Insurance Laws in USA

USA Auto Insurance laws
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 5.951 seconds.