Insurance Claims and Negotiations 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 Insurance Claims and Negotiations flashcards as text
What is the difference between a first-party and third-party insurance claim?
Answer: First-party is filed with your own insurer; third-party is filed against the at-fault driver's insurer
First-party claims involve your own insurance, while third-party claims are filed against the negligent driver's insurer for damages they caused.
What is 'bad faith' insurance handling?
Answer: An insurer unreasonably denying or delaying a valid claim
Bad faith occurs when an insurer fails to fulfill its legal obligation to investigate and pay valid claims fairly and promptly.
What does 'subrogation' mean in the context of insurance?
Answer: Your insurer's right to recover payments from the at-fault party after paying your claim
Subrogation allows your insurer to recover the money it paid you by pursuing the at-fault party's insurance company.
What is the insurance adjuster's primary goal when evaluating your claim?
Answer: To minimize the payout made on behalf of the insurer
Insurance adjusters are employed by the insurer and work to limit financial exposure by minimizing claim payouts.
What is 'PIP' coverage in auto insurance?
Answer: Personal Injury Protection, which covers medical expenses regardless of fault
Personal Injury Protection (PIP) is no-fault coverage that pays for your medical expenses and lost wages regardless of who caused the accident.
What should you do if the insurance company's settlement offer is too low?
Answer: Reject it and have your lawyer send a counter-demand with supporting documentation
Counter-demands backed by medical records, expert reports, and documented losses demonstrate the claim's value and drive better settlement outcomes.