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Demanding Fairness from Insurance Companies

Those unfamiliar with the legal system are often surprised at the significant role that is played by insurance companies. While most understand that insurance interests are often involved in injury lawsuits, it is hard to underestimate the role that they play in crafting defenses and managing how a case (or possible settlement) plays out. That is why it is critical to ensure that these companies play by the rules and act reasonably when dealing with plaintiffs. Unfortunately, insurance companies are usually only interested in their bottom line, even if they means hurting those to whom much is owed following an act of negligence.

One of the key roles that an Illinois nursing home lawyer can perform is acting as the advocate for the patient with the insurance company. Usually a possible injury settlement as the result of senior neglect is paid for by the nursing home company’s insurance. Some facilities are self-insured, but they are generally the exception, not the rule. Sadly, without representation some residents are often enticed to make side arrangement with insurance companies that are grossly unfair, without taking into account the full scope of their loss. This is true in so many contexts, from nursing home neglect to auto accident cases.

All community members should remember that no matter how quickly they’d like to settle the matter or how fair an insurance representative might seem, they should never handle these matters without a legal professional looking out solely for their own interests. This weekend, for example, a Chicago Tribune article was published which discusses one way in which an insurance company might bilk those who are owed.

Rigged Insurance System at All State?
The article discusses the injury settlement software used by the company Allstate Corp.–one of the nation’s largest insurers. The story was based around a former claims project manager for the company who now offers insight into how policyholders are not treated fairly following accidents. He recalls that his first became upset when Allstate reached a settlement to pay $10 million as a result of problems with software that the company used to determine payouts to those making claims. The adjuster noted that, as someone who worked in the system, he understood how little of a punishment this truly was. For a company as large as Allstate, this penalty would do little to deter its conduct and ensure they were fair to policyholders.

The main issue concerns the software known as “Collosus.” It is a program that allows the company to plug in random variables and get an injury settlement out to pop out. They usually then offer that amount to the injured party as payment on a claim. The main problem, as the former claims adjuster noted, was that the software is easily manipulated. A few numbers can be left out which then allow the software to pop out amounts that are far too small–low ball offers that can be drastically unfair to the unsuspecting claimant.

Have Legal Professionals On Your Side
While this particular article was focused on auto accident injuries, it offers a critical lesson for anyone who has been harmed by another’s negligence and must deal with insurance companies: Do not go it alone. We do not live in a world where insurance interests are placed below those of the individuals owed compensation by the company. Instead, most people harmed must act diligently every step of the way to ensure they are being treated fairly.

See Other Blog Posts:

Investigations After Nursing Home Resident Develops Bed Sores

When Nursing Home Abuse Turns Criminal