How Does Insurance Adjuster Come Up With Initial Settlement Offer?

The number that the adjuster introduces at the start of negotiations has been based on the findings from an investigation of the story behind the reported accident.

What was the nature of that investigation?

At the start, the adjuster’s efforts were focused on speaking with those that had been involved in the same accident. In addition, an adjuster’s investigative efforts would include plans for obtaining the police report.

Sometimes, that same report contains the names of one or 2 witnesses. Following discovery of those names, an adjuster’s schedule would get changed, in order to accommodate the need for visits with the named witnesses.

Next, the investigation would need to incorporate an examination of the insurance company’s database. That should reveal whether or not the claimant has submitted any earlier claims.

Adjusters’ doubts tend to trigger the next step in the investigative efforts. Those doubts center on suspicions about delivery by the claimant, or the claimant’s lawyer of all the relevant medical records. Consequently, those doubts motivate a quest for more records, along with any other documents.

Restrictions placed on adjuster, when determining amount to quote, at time of 1st offer

Supervisor often asks that the initial offer be some percent of the claims true value. Typically, supervisors suggest a figure that is around 40% of that particular value. By starting with that low number, an adjuster has more room for increasing the size of each bid, as the negotiations move forward.

Personal Injury Lawyer in Cambridge will consider what might happen if that initial bid were almost the same as the claim’s true value. Under those circumstances, the planned increase in the size of each bid/offer could force the presentation of an offer that exceeded what the insurer had envisioned for the payout.

Supervisors do allow adjusters to discount any bills from a chiropractor. In fact, that permitted action could really get included on a list of restrictions. Supervisors frown on a consideration of such bills, during any determination of the initial settlement offer.

The insurance company usually asks that adjusters’ efforts at determining an opening bid proceed by using a formula or a computer program. The formula would rely on utilization of a multiplier, a figure between 1.5 and 5. That should yield an approximation of the value for the pain and suffering.

The formula does not allow for a consideration of what sort of medical provider that injured victim/claimant has used. For that reason, some insurance companies prefer to use a computer program. The program’s software automatically reduces the number representing the claim’s value, if the bulk of the claimant’s visits have been to a chiropractor. Adjusters’ bids are also lower, whenever claimants have failed to hire a lawyer. Do not overlook that fact.