Insurance company acts first?

  • by lyong222
  • Apr 16,2017
  • 4 answers

What are the general reasons an insurance company might start communication before receiving a demand letter.
We'll guess at a couple and you can add others.
a. concerned or worried about what is taking so long.
b. they are in some unknown hurry to settle.
Please explain this unusual scenario whereby there was no demand letter.


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Insurance Answers (4)

efflandt 6 months ago

I guess it depends upon the nature of the claim. If it is just property damage and your insurance company had contacted the liable party, you get whatever appraisal or estimate(s) required by the insurance claims department of the liable party and they pay to repair the damage or send you a check. That is what happened when a girl made a left turn in front of me on a dark rainy night.
But in my almost 65 years I have never been in an accident with injuries, so I do not know the exact procedure for that.

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A Hunch 6 months ago

I can't think of a situation where an insurance company doesn't "act first".
I can't think of a scenario where they would wait for a demand letter.
lyong222 -
a) If the insurance company has not been notified that you have a lawyer they aren't going to wait for a demand letter.
b) If the insurance company has been notified that you have a lawyer they still don't wait for a demand letter, they will simply work the transaction through the attorney instead of you.
A demand letter would only be used if you won't talk to the insurance company or the offer(s) they are providing are not acceptable to you.

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lucy 6 months ago

Based on your prior questions, my guess they are thinking about the SOL (Statue of Limitations) which means that they must settle this before August (X) 2017, 2 years from the date of the accident. But, if you do not have a lawyer and do not settle prior to the 2 years, then you are SOL (Sh*t out of luck), since a lawyer would have to file suit to extend your claim, which could mean next year or 6 years later.
As a general rule, most insurance companies want to close claims. You don't need a demand letter to sue, but most likely since done treating, they want to settle/close the claim. My guess would be that they want to let you know they want to settle and then they want you to know what their "mindset" is what they believe your claim is worth.
Based on your prior questions, you don't need a lawyer since they did not dispute fault and guessing am not disputing your injuries. At this point, (if) you hire a lawyer, then they take 33% of your settlement for doing nothing but making a few phone calls or letters.
You have till August (X) of 2017, so they will try to settle prior to that, but (if), you and State Farm don't agree, then hire a lawyer (w/in) 2 weeks of the SOL that runs. Then the lawyer will have to file a lawsuit to extend the time (forever).
But, IF, you hire a lawyer and (if) State Farms offers (X) amount, then you need to make sure that the lawyer does NOT get more, if the settlement is less, only (if) the settlement is more.
IE: Insurance offers $10,000, and if you hire a lawyer, he/she gets (only) if the settlement is MORE than $10,000, and only the amount over the settlement they offered. You don't want to wait till it is close, since NO lawyer will handle, but you have about 5 months to talk to a few for legal advice.
Most good lawyers will give you 1 free short consult in person for your options.

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coraann 6 months ago

An insurance company is always in a hurry to get you to sign off and eliminate
any further claims you might need to make for ongoing health problems caused
by the original injury. NEVER sign off. Reoccurances can happen for years.

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