Insurance Representative doesn't have authority to release full amount.

[JamesMR1967]

South Carolina

About 3 years ago I was involved in an accident, where I was hit by a car resulting in a bone fracture and open surgery, I was put out of work for several months. My case was accepted by a law firm and it's taken a very long time because many of the lawyers on the case ended up leaving the firm and handing the case off to someone else. The 1st attorney I spoke with told me handling this case could take up to 6 months. However, this of coarse was not the case.

I stayed patient and a little over a month ago I had my 1st deposition, along with the person who hit me. A few days ago I attended a mediation session. My medical bills were around $160k, My lawyers were demanding 500k, the limits from what I hear of the insurance policy. The mediator went and spoke to the lawyer in the other room who was on the phone with the representative for the insurance company. Her counter offer was $170k. After 3 hours of my side going down 10k and her side going up 10k, the mediator gathered my lawyers and they left the room for about 10 minutes.

When they came back in the mediator said the representative wanted to offer me more than 260k but didn't have the authority to and they would have to get in touch with someone higher up in the insurance company. I was extremely disappointed and felt like my time was wasted. The mediator mentioned something about finding the right person within the next week. But my lawyer was very vague on when he would have an actual conversation with this "higher up" person. This news has been very distressing and one of my family members nearly had a nervous break down, I think we both did. I have a few questions.

Does this sound normal for an insurance representative not to have the authority to release the full amount of money?

If this really is a matter of finding the right person, realistically should it take long? Can't that higher up person simply ignore my lawyers message.

I would rather the insurance company flat out say they are only willing to give a certain amount, take it or leave it, rather than lie and say they want to give me more than a certain amount but can't. I feel that is outright dishonest.

 

[Just Blue]

The advice you received at the other site was good.

 

[JamesMR1967]

The advice you received at the other site was good.

Yes it was, unfortunately I'm only allowed to make 5 posts a day, I won't be able to respond to their posts in another 12 hours.

 

[Just Blue]

Yes it was, unfortunately I'm only allowed to make 5 posts a day, I won't be able to respond to their posts in another 12 hours.

Ah...I forgot about that pita feature! I think it's a spam deterrent.

 

[justalayman]

it is not unusual for an attorney, or even a company employee, to be given an upper limit of their authority. Once that limit has been reached, their authority to commit to anything ceases and they must seek authorization to commit to a higher number


It’s also possible this was nothing more than a negotiating tactic to make you think they are willing to pay the amount but need special authorization to do so..then they come back with a lesser amount in response and say the boss said no more than “this” and hope you’ll accept it.



Rather than depend on them to respond, you need to have a number that is what you will accept and if they don’t reach that number you go to court. Of course you need to consider your attorneys cut as well as whether you will need to repay insurance companies or medical providers from the award as well. This is all something your attorney should be discussing with you.

 

[adjusterjack]

Does this sound normal for an insurance representative not to have the authority to release the full amount of money? If this really is a matter of finding the right person, realistically should it take long?

Absolutely normal. My authority was $100,000. My boss' authority was $250,000. Her boss' authority was $500,000. Higher than that we had to get approval from a corporate officer. And the higher up the food chain one goes for approval, the longer it takes.

Can't that higher up person simply ignore my lawyers message.

Sure. It's a war of attrition. The longer they make you wait the more frustrated and desperate you get until you accept the low ball offer.

I would rather the insurance company flat out say they are only willing to give a certain amount, take it or leave it

Might come to that when they think you are softened up enough. By the same token, you can say (through your attorney of course) "$500,000 right now or no more talk and we go to trial."

rather than lie and say they want to give me more than a certain amount but can't. I feel that is outright dishonest.

It's all tactics. Remember, they owe you nothing until a court of law says so and says how much.

 

[JamesMR1967]

Might come to that when they think you are softened up enough. By the same token, you can say (through your attorney of course) "$500,000 right now or no more talk and we go to trial."

Hmmm, I did not know I had this option. I think the number that i'm happy with is somewhere between 300k to 325k, which isn't that far from the 250k offer, if my mediator was being honest in saying that she wanted to offer me more than that. Anything more than 325k isn't really necessary in my opinion and i'm not that invested in prolonging this case to get more then that.

Thank you for providing a little more clarity because I was confused at 1st about the whole "authority to release" thing.

 

[adjusterjack]

Anything more than 325k isn't really necessary

Sure it is. If you can get more than that, why sell yourself short.

What's the nature of your injury, if you don't mind my asking? Any permanent disability involved? Anything that would make a jury sympathetic?

Anything more than 325k isn't really necessary in my opinion and i'm not that invested in prolonging this case to get more then that.

With that philosophy the insurance industry will build you a monument declaring you the ideal claimant.

 

[JamesMR1967]

Sure it is. If you can get more than that, why sell yourself short.

What's the nature of your injury, if you don't mind my asking? Any permanent disability involved? Anything that would make a jury sympathetic?



With that philosophy the insurance industry will build you a monument declaring you the ideal claimant.

Well by doing my math, (and I did change some of the numbers out of fear the opposing side may come across this posts), If I get a 325k settlement, I could get about 60k after all the bills and lawyers are paid off. That's more money that I make in 2 years and would allow me to make major changes in my life and my family. I'm honestly not very satisfied with my life, of coarse I've never expressed this to my lawyers or the opposing side. 60k is enough to make all the difference. My injury was a leg fracture, I walked with crutches for 2 months. After that I was dealing with a legal situation so it was important to make money, after 8 months I finally found a job, however walking was very painful after 2 hours. I even had to quit a few jobs because it was too much of a strain on my leg. There is no permanent injury but I have a rod in my leg.

 

[PayrollHRGuy]

of coarse I've never expressed this to my lawyers

And why not? Your lawyer should know what you want.

 

[justalayman]

I’m amazed you have reached the offer you have (but obviously I don’t know everything about your situation)


Your injury was minimal

You have little to no permanent disability issues.

Your income, or loss of income, was limited.

I think you’re lucky their offer breached the magical 6 figure range. I’ve known people with much more severe and lasting injuries that walked away with much much less.

I’m not suggesting you take less than they are willing to give but given the issues stated, I’m a bit surprised they’ve offered what they have.

As to $60k being enough to make all the difference.


There was a guy near where I live that won a couple million in the lottery (back when a million bucks was efffectively a lot of money). He lived in a trailer at the time.

He claimed his prize and set about changing his life

Short story version: within a couple years he moved back to that same trailer and didn’t have enough money to even turn on the electric.


Just the same, there is a huge list of people that became millionaires having started with little to no money.

Money doesn’t improve your life. Only you can improve your life. You can utilize money to help get you where you’re going but in the end, it’s all about you and what you’re willing to do to make your life better.

 

[JamesMR1967]

I’m amazed you have reached the offer you have (but obviously I don’t know everything about your situation)


Your injury was minimal

You have little to no permanent disability issues.

Your income, or loss of income, was limited.

I think you’re lucky their offer breached the magical 6 figure range. I’ve known people with much more severe and lasting injuries that walked away with much much less.

I’m not suggesting you take less than they are willing to give but given the issues stated, I’m a bit surprised they’ve offered what they have.

As to $60k being enough to make all the difference.


There was a guy near where I live that won a couple million in the lottery (back when a million bucks was efffectively a lot of money). He lived in a trailer at the time.

He claimed his prize and set about changing his life

Short story version: within a couple years he moved back to that same trailer and didn’t have enough money to even turn on the electric.


Just the same, there is a huge list of people that became millionaires having started with little to no money.

Money doesn’t improve your life. Only you can improve your life. You can utilize money to help get you where you’re going but in the end, it’s all about you and what you’re willing to do to make your life better.

The offer was made based on the medical bills and I guess the nature of the accident. I wont divulge too much about details but the person driving was very negligent because they hit me when I was in plain sight, meaning they probably weren't looking where they were going and they were on the wrong side of the road. Furthermore there is proof they lied under oath and accused the police witness was lying and making things up, I think this person's entire deposition was a lie. This is just what my lawyers say the reason for the high demand was. They are saying the jury wont like him based on this fact and that the case dragged out because of his constant lying, and he called the cop a liar. The other side was saying exactly what you were saying. My lawyers are counting on the character of this person being the downfall of the case, also the truck he hit me with was huge.

As for your opinions about money and it's relationship to happiness, I guess to each their own. It's a matter of getting back on track for me. I currently live with a relative and don't have a vehicle and this complicates things. I must abide by certain rules. If I can get my own car and my own place, and move to a bigger city, that would be a great help.

 

[justalayman]

If you think money, especially $60k will make your life hunky Dory, then best of luck to ya. I was trying to simply suggest the change in your life must come from within you.

While the money can help you in your travel, you need to review your life and see why you are so unhappy with life and how you got to where you are.

Best of luck to ya.


Oh, and if you haven’t already discussed it you’ll want to ask your attorney if anything you’re paid is taxable.

 

[JamesMR1967]

If you think money, especially $60k will make your life hunky Dory, then best of luck to ya. I was trying to simply suggest the change in your life must come from within you.

While the money can help you in your travel, you need to review your life and see why you are so unhappy with life and how you got to where you are.

Best of luck to ya.


Oh, and if you haven’t already discussed it you’ll want to ask your attorney if anything you’re paid is taxable.

I'll be sure to ask him. After doing some research it looks like in personal injury cases it's the punitive damages that are taxed, when a person acts with malice or intent, this doesn't seem to be the case. But thanks for letting me know about that. As far as changing my life, I certainly think money provides more options. I could move to a bigger city, finally leave the restaurant business and go back to school. I have an associates degree and I wanted to get into the nursing program a year ago, but I didn't have the money for the deposit to hold my spot or for all my immunizations, both of which totaled to $1,000. So yes I definitely think it can help change my life somewhat, maybe not make things perfect but at least get me to a place where i'm content.

 

[justalayman]

Offhand I don’t know the answer to the tax issue. The fact it appears it will be a settlement rather than a court judgment may make a difference as well. Just something to be aware of when you’re crunching numbers

Even now when you say it’s the money, you are failing to see that while the money helps, the drive to improve your situation is within you. As I said; the money may help (in the one example I gave it did just the opposite) but unless you desire to make the change and that desire is strong enough to,drive you to that change, the money won’t do a darn thing for you. Sounds like you do want to improve your life.. best wishes in your endeavors..