We are all good citizens. To protect ourselves in the event of an accident, we purchase liability insurance. Some people buy minimum coverage, while others purchase more.
This insurance protects you and your assets if you cause an automobile, motorcycle or other motor vehicle accident.
Let’s say you cause an accident. WRONG!
The fine print of your insurance policy will have a lot more language than most people would understand. In simple English, it says that you have accepted the insurance policy. If they decide to litigate, you agree with them to cooperate. It is not you who decides if a case will be settled.
Insurance companies want to make a lot of money while paying as little as they can. The insurance companies have grown very arrogant since Proposition 213 was passed in California. Their coffers are full of your money.
They force claims to be brought to Court instead of settling meritorious cases. This is to stop personal injuries lawyers from obtaining just compensation for their clients. They know that personal injury attorneys don’t have as much money to litigate cases as they do. Their strategy is to stop personal injury lawyers from obtaining just compensation for their clients. It is ultimately the victim and those who were injured in an accident that are the most hurt. Big business, however, makes more profit.
Insurance companies are able to take advantage of even those who cause an accident and have adequate liability insurance to cover the claim.
Insurance companies are skilled at deceit. Insurance companies are experts at deceit. They don’t mention that the Court backlog is because insurance companies haven’t settled claims as they should.
Let’s return to the case of you causing an injury. If the insurance company refuses to settle the case within the policy limits, then you will be taken through the legal system. It is possible that you will be required to answer discovery questions, give depositions, or even to take time off in order to go to trial. This is a difficult and lengthy process that you probably didn’t anticipate you would need to face when you bought liability insurance. Surprise!
In most cases, the insurance company will pay the judgement if you lose. However, guess what, YOU WILL HAVE A JUDGMENT AGAINST YOU ON YOUR CREDIT RECORD, and in the Court file. Your credit score has been affected by your insurance company.
Is it fair? It is not fair, I say. Your insurance company could have paid for the case. However, instead of trying to minimize the amount they have left to you so they can make a profit, they settled. They did this without considering your credit score or making your name public as a defendant in a lawsuit against you.
Insurance companies often have in-house legal counsel. Others use outside attorneys. These lawyers have a duty of care to you and to your best interests. In reality, they will do whatever is best for the company. This is the greatest conflict of interests. In ethics, the attorney you use to represent your case for the insurance company has a duty towards you, and not to the insurance company. In reality, the insurance companies give the attorney his marching orders.
One of the worst examples is the recent Hurricane Katrina tragedy. Did you know that many poor people are being left behind by insurance companies because of their insurance policies?
America and its consumers need to stop complaining and start looking for the good things in life. The problem is not with the trial attorneys; it’s the big business that wants to take advantage of the poor so they can make more profit at your expense. This has become a political issue for some. I’ve heard President Bush talk about Tort reform and blame the nation’s health-care woes on the trial lawyers.
You are about to get screwed if you read tort reform! If you are denied your right to damages compensation in Court of law, you’ll be the one who suffers, while the big business will make a lot of money!
By Norman Gregory Fernandez, Esq., © 2007