Dealing with Insurance Companies Flashcards
6 cards from real Accident Lawyer Tips practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Dealing with Insurance Companies flashcards as text
Why should you avoid giving a recorded statement to the at-fault driver's insurer without a lawyer?
Answer: Your words can be taken out of context to minimize your claim
Insurance adjusters are trained to use your statements against you to reduce the settlement amount they owe.
What does an insurance adjuster's job primarily involve in an accident claim?
Answer: Minimizing the insurer's payout on your claim
Insurance adjusters work for the insurer and their primary goal is to settle claims for as little money as possible.
What should you do if an insurance company makes a quick settlement offer right after the accident?
Answer: Consult a lawyer before accepting, as the offer may be far too low
Early settlement offers are typically made before the full extent of injuries is known and are often far below fair value.
What is 'bad faith' by an insurance company in an accident claim?
Answer: Unreasonably delaying or denying a valid claim without a legitimate basis
Insurance bad faith occurs when an insurer unjustifiably delays, denies, or undervalues a legitimate claim, potentially triggering extra-contractual damages.
What is a 'reservation of rights' letter from an insurance company?
Answer: Notice that the insurer is investigating coverage while reserving the right to deny the claim
A reservation of rights letter signals that the insurer is handling your claim while preserving its right to deny coverage if a policy exclusion applies.
Why is it important to keep all correspondence with insurance companies in writing?
Answer: Written records prevent disputes about what was said and agreed upon
A written paper trail protects you if the insurer later denies or mischaracterizes commitments made during the claims process.