Have you ever wondered why the insurer takes so long to settle a claim and issue a check?

Your personal injury attorney will spend months arguing with the insurance company about whether or not you have a case.  If it’s a simple bone fracture or severe injury requiring surgery, which a jury would clearly see, the insurance company will usually settle rapidly, out of court.

However, if it’s a tissue damage injury, the insurer will mostly likely drag your case out.  Simply because tissue damage injuries, such as a herniated disc from an automobile accident, are so hard to prove. These type of injuries require an MRI, which is not administered during your emergency room visit. The radiologist and your doctor will have to confirm that this is an injury sustained from your accident.

An X-Ray of your vertebrae will NOT show the actual damage to your tissue such as a protruding herniated disc in your neck or back. The insurance company will argue, “Was this tissue damage caused from this accident or incident?.”  The insurance  company will claim that you hurt your back or neck some how over the years from your work place, previous automobile accidents, or anything related to your injury.   In other words. If you don’t have a broken bone, severed body part, or anything that the court jury can visibly see and understand in layman’s terms. Your case or claim will most likely not settle immediately and their will be arguments regarding causality.

There is another issue that most claimant’s are not aware of.  The insurance company is “holding” the money to pay out claims.  They are required by law to have certain money reserves available to pay reasonable claims.  This money comes from premiums that you and I pay for our insurance policies.  But the insurer’s are far from foolish – they are in business to make money.  And – they make a lot of money!  They take the money that is held to pay claims and they invest it in stocks, bonds, loans, real estate and ventures – anywhere and anyplace they can make money for their shareholders.  So – the longer the period of time the insurer can hold onto the money legally, the more they make from investing the money.  Let’s take a simple example.  If an insurer could find a way to delay payments to claimants by 10 days over an average claim, and let us say that the insurer settles 50 million in claims in that ten day period, and, that the insurer can earn a minimal 3% return on its investment, they will rake in over a year an additional $150,000.00.  One insurer paid out 400 million in claims made over a two week period as a result of tornado damage.  If that insurer could find a legal way to delay the checks from being cashed by just 10 days they will net $350,000.  Not a bad return on YOUR money!!

If you find yourself in such a position it is best to consult an attorney with substantial experience. There are so many different circumstances that a proper answer to your particular problem can only be obtained by a trained and experienced lawyer.

If you have any question regarding this or any other legal matter our firm may be able to help you. Please contact Jupiter Legal Advocates at (561) 748-8000 or email us at [email protected] for further information and assistance. We try our very best to respond immediately.

If you require the immediate services of a highly experienced and aggressive attorney, please call for a FREE consultation

JUPITER LEGAL ADVOCATES

561 748-8000
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