Leveraging Insurance Reserves in Personal Injury Claims

Before a claim can be set up and assigned to an adjuster, the supervisor must set an initial "reserve." A reserve is a sum an insurance company earmarks to settle a claim, including the anticipated costs of handling of the claim.

When it comes time for an adjuster or claims supervisor to request settlement authority, the reserves on the file are a limit on authority. There are exceptions, but this is the general rule. It is essential that plaintiff's attorneys provide the insurance company with new information when received, so that the reserve will have been set high enough to allow an adjuster to settle the claim for a sum that the plaintiff is willing to accept.

Plaintiff’s attorneys do not always take the time, pre-suit, to gather information that an adjuster needs to settle a claim. Often the reason is that the plaintiff’s attorney or paralegal does not understand what the adjuster needs to satisfy the insurance company's requirements. Another reason is the plaintiff counsel’s failure to have procedures in place that periodically update a file and in turn update the insurance adjuster.

Listen as our panelist explains what insurance reserves are, how they are set, and how plaintiff's attorneys can work with insurance adjusters pre-suit to avoid delays in claim settlement down the road. The panelist will also discuss best practices for communicating with the insurance adjuster, as well as case management techniques.

1. Overview of insurance reserves and how they are set
2. Discussion of how plaintiff's attorneys can assist in ensuring that insurance reserves are correctly set pre-suit
3. Analysis of how initial reserve-setting impacts settlement at the end of the claim
4. Best practices and case management techniques to assist in proper reserves maintenance

The panelist will review these and other relevant topics:

• What are insurance reserves?
• How are insurance reserves set?
• How can plaintiff's attorneys work with insurance adjusters to ensure that insurance reserves are up to date?
• How can a settlement be affected by insurance reserves?