A guide to insurance settlements

2007-03-08 10:33:40

( Insurance )



Insurance settlements involving insurance companies can present a lot of problems. This is because the insurers are dependent upon independent contractors to perform their duties under the insurance policy. There then arises the issue of whether an adjuster or a claims agent can bind the insurer even without the insurer’s consent. In general terms, most courts hold that an adjuster or claims agent has the authority to bind the insurer to matters given to the agent by the insurer. But then not all courts agree with this. For other courts, an adjuster or a claims agent has no authority whatsoever to bind the insurer with regards to matters beyond the scope of the agent’s responsibilities. Granting of insurance policies to insurers the right to act as the agent for the insured in negotiating a settlement is also a cause for problems. The issue here is whether provisions in an insurance contract can give the insurer the right to represent the insured to settle any disputes.

Insurance settlements can be resolved in different ways. One of which is through structured settlements in which large future damages can be paid to you using a periodic-payment settlement. Another is cash settlements in which money is given to you from pension rights, savings or investments, insurance or endowment policies, and assets or inheritance. Another is life settlements, which is when you are not terminally ill and you decide to sell your life insurance contract. Another is viatical settlements, which enables you who face a terminal illness to use the present value of your life insurance policy to possibly alleviate your financial burdens. Another is senior settlements in which you, given that you are 65 years old or older is offered a viatical under the consent that you would no longer need an existing life insurance policy but may be in need of the cash value your life insurance policy represents.

Insurance settlements can get the best out of you most especially when you are older and might possibly be unaware of the offers laid out in front of you; you should be very careful with your decisions. Not all insurance settlements and adjustments are for your benefit so it would definitely be advantageous for you to represent yourself so you would be able to decide the best settlements and adjustments for yourself.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.