At What Stage Of The Claims Process Does Settlement Take Place?

In a personal injury case, settlement takes place when the defendant’s insurance company makes an offer of payment to the injured party. Presentation of an offer of settlement could come at any point, during the claims process, as per personal injury lawyer in Gilroy.  

One rule about timing for offer to settle with insurance company

Offer is always presented after the injured party has submitted a personal injury claim. There is no rule regarding what must take place, following submission of that claim, but before the disputing parties have agree to settle.  

Four possible scenarios for what might take place before a settlement

That could be a period when successful negotiations take place, and the disputing parties agree to settlement terms. 

That could be a span of time during which the negotiations have ended, due to a stalemate, but the person that filed the claim has not yet filed a complaint, in order to initiate a lawsuit. 

That could be the span of time between the filing of a lawsuit and the start of a trial.That could be the period during the trial when the jury is deliberating, but has not yet announced its verdict.  

What scenario would the insurance company like to see each claimant pursuing?

That would be a scenario in which the insurance adjuster has made a low-ball claim, and the injured victim (claimant) has agreed to accept that low-ball claim. 

That situation would push the claimant to sign a release form, before having learned the full nature and extent of the reported injury. 

What happens after settlement?

The claimant must abandon all possible claims against the defendant.

The facts about the settled personal injury case remain hidden from the public’s eye. 

The plaintiff has managed to reduce the amount of time that must pass before he or she can anticipate delivery of a compensation package. 

The plaintiff gets to appreciate the fact that he/she has avoided the chance of losing, as the result of a courtroom trial. The same plaintiff could not feel sure of having achieved a fair settlement. 

What could delay a settlement’s achievement?

The insurance company could delay that event, if it failed to respond to a claimant’s demand or offer by coming forward with a counter offer. 

The insurance adjuster could delay that event, if he or she were to keep pointing to various weaknesses in the claimant’s demand letter, and failing to initiate the negotiations. 

A claimant could delay that event, if he or she were to ignore each of the adjuster’s comments on the weaknesses in the demand letter. That would remove any reason that the adjuster might have for presenting an opening bid, and initiating the expected settlement negotiations.

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