| I have reviewed hundreds of claim files and | | | | client's credibility, and not about the company's |
| attorney files, and often get calls from | | | | credibility. |
| policyholder's lawyers asking how to best write | | | | MISTAKE NO. 6: Delaying your response to the |
| letters to an insurer that is committing bad faith. | | | | company. Insurance companies use delay on a |
| Here are 8 of the most costly mistakes I see | | | | policyholder the same way that you use hot |
| lawyers make. | | | | water on a sticky jar lid... to loosen it up. It's hard |
| MISTAKE NO. 1: Trying to "set up" a bad faith | | | | to complain about delay, though, when the |
| case. Some lawyers think they need to hide the | | | | policyholder's own lawyer takes weeks or months |
| ball and snap the trap before the company gets | | | | to answer letters or provide information. |
| wise and pays the claim. | | | | ADVICE: Never let the ball linger in your court. Get |
| ADVICE: The best way to "set up" an insurance | | | | them what they ask for, do it quick, and then ask |
| company is to give it every opportunity to do the | | | | if they need anything else. Any delay must |
| right thing. Give them the facts and the law. If | | | | always come from them. |
| they do the right thing... great. If they ignore you, | | | | MISTAKE NO. 7: Failing to ask questions. The |
| they do a better job of setting themselves up | | | | insurance company has a duty to provide the |
| than you can ever do. The exception is the | | | | insured with full and fair disclosure of the facts |
| company is issuing "trial denials," which are then | | | | and the law on which it bases a denial. Ask them |
| withdrawn as soon as anyone challenges. This calls | | | | to live up to this duty. They usually fail miserably. |
| for a different approach. | | | | ADVICE: Ask the company for specific facts. |
| MISTAKE NO. 2: Writing nasty letters to the | | | | What investigation have you conducted? What |
| company -threatening to sue for bad faith. When | | | | facts have you uncovered? Who have you |
| it comes time to try the case, tough talk only | | | | interviewed? Will you supply us with copies of |
| hurts the case and makes you look bad. | | | | your claims file? When there is no basis for the |
| ADVICE: Forget flamboyance. Be pleasant. Be | | | | denial, claims handlers almost always refuse to |
| simple. | | | | answer questions. That makes powerful evidence |
| MISTAKE NO. 3: Writing long winded letters in a | | | | later. |
| lecturing tone. These make lousy trial exhibits, and | | | | MISTAKE NO. 8: Not seeing the "greed" card |
| diffuse whatever legitimate points you have. | | | | coming. The defense is always that you and your |
| ADVICE: Keep your letters short, to the point, | | | | client are acting out of greed. Don't underestimate |
| and end by offering whatever help you can give. | | | | it; it gets instant traction. |
| When you get no response, write again. Three | | | | ADVICE: When appropriate, I have actually |
| short letters asking for help, all short and to the | | | | written a letter offering to drop the claim if the |
| point, and all ignored by the company, are much | | | | company is willing to agree to an audit of their |
| better than one long winded one. | | | | claim files in order to correct similar violations |
| MISTAKE NO. 4: Overreaching on the value of the | | | | against other policyholders. For some reason the |
| claim. Too many lawyers think their job is to get | | | | company never accepts. Later, when the |
| everything they can, and when they get that, to | | | | company plays the greed card, that letter |
| get some more. | | | | becomes a nuclear weapon. It not only trumps |
| ADVICE: If you can get what is fair, you have | | | | the greed card, it destroys the entire defense. |
| done a good job. In trial, the whole story is one | | | | Even if the judge is reluctant to allow the letter |
| of a company that seeks to get every | | | | into evidence, the threat of opening the door can |
| advantage it can over the policyholder. If the | | | | seriously hamstring traditional defense evidence |
| policyholder's lawyer is playing the same game | | | | and arguments. |
| with the insurance company, you lose the high | | | | The more unethical your opponent, the more |
| ground. | | | | important it is to stay on the high ground |
| MISTAKE NO. 5: Whining about "my poor client"- | | | | yourself.When the insurance companies refuse to |
| using hyperbole. | | | | give you what you paid for - Abourezk Law will |
| ADVICE: Bad faith is not about your client, it's | | | | be there. Our lawyers that handle insurance bad |
| about the company. When the typical plaintiff's | | | | faith will help make sure you get the claim you're |
| lawyer whines about "my poor client," it gives the | | | | entitled to. Visit online for more information. |
| company an excuse to make the case about the | | | | |