Leveraging Insurance Reserves in Personal Injury Claims

Description

Before a claim can be set up and assigned to an adjuster, the supervisor must set an initial "reserve." A reserve is a sum an insurance company earmarks to settle a claim, including the anticipated costs of handling of the claim.

When it comes time for an adjuster or claims supervisor to request settlement authority, the reserves on the file are a limit on authority. There are exceptions, but this is the general rule. It is essential that plaintiff's attorneys provide the insurance company with new information when received, so that the reserve will have been set high enough to allow an adjuster to settle the claim for a sum that the plaintiff is willing to accept.

Plaintiff’s attorneys do not always take the time, pre-suit, to gather information that an adjuster needs to settle a claim. Often the reason is that the plaintiff’s attorney or paralegal does not understand what the adjuster needs to satisfy the insurance company's requirements. Another reason is the plaintiff counsel’s failure to have procedures in place that periodically update a file and in turn update the insurance adjuster.

Listen as our panelist explains what insurance reserves are, how they are set, and how plaintiff's attorneys can work with insurance adjusters pre-suit to avoid delays in claim settlement down the road. The panelist will also discuss best practices for communicating with the insurance adjuster, as well as case management techniques.