Early Resolution Settlement Authority
Early Resolution Settlements have been a valuable strategy for CBCS and our clients. We have been able to effectively mitigate and reduce claim costs using this strategy for several decades. With the rising costs of medical care, inflationary issues, and increasing prevalence of plaintiff’s attorneys, it is becoming critical that we attempt early resolution of bodily injury claims when possible.
What is it?
An early resolution settlement offer is an attempt to resolve a liability claim as early as possible within the claims process. In cases where liability appears adverse to our insured, the adjuster will work to settle the claim for the lowest possible cost—up to their designated authority level. The first call may be the last best chance we get to discuss resolution of the matter with the claimant individually. Typically, rear end accidents tend to stay open longer and are more difficult to defend as back injuries inherent to the aging process are attributed to the rear end accident itself. Liability is also difficult to defend without exacerbating circumstances such as staged accidents or the claimant vehicle taking away our safe following distance.
Early resolution settlement authority allows CBCS to act quickly in attempting to resolve these claims for a full and final resolution within hours of the accident. The settlement offer is often made without having reviewed any medical records, bills, or other documentation that would normally be present when evaluating an injury claim. Depending on the severity of the accident and the nature of the injuries being claimed, a first call settlement may range from $500 and up to $20,000 in some cases. Even if there is a
questionable causation for injury, a early resolution settlement (even at the high end) will likely represent long-term savings for our clients.
Early resolution settlement is a claim resolution strategy that seeks to:
• Settle the claim before the claimant hires an attorney.
• Cap the exposure on claims.
• Cap the medical treatment.
• Reduce the claim cycle time.
• Result in a lower average incurred on claim files.
Examples of How it Benefits Our Clients
| Example #1: (Chicago, IL) Insured sideswiped a 2016 Chevy Malibu resulting in a total loss to the claimant vehicle. All three passengers reported minor soft tissue injuries. None of the passengers sought medical treatment following the accident. The adjuster made contact with all three vehicle occupants immediately following the accident. All 3 claims were settled by 6/30/21 for $3k, $2.5k and $1k and claimants signed a full and final release. Because of CBCS authority granted by the client for First Call Settlement, this case was able to be resolved without attorney representation by the claimants. | Example #2: (Sweetwater, TX) Insured traveling 55 mph rear ended a pickup truck who was stopped in traffic. Both occupants had whiplash injuries and significant bruising and were seen at the emergency room following the accident. One of the occupants was unable to return to her place of employment for two weeks. Given the severity of the accident, the adjuster moved to settle both injury claims without obtaining or reviewing any medical records. Both claims were settled by 6/30/21 for $15k and $5k and claimants signed a full and final release. Because of CBCS authority granted by the client for First Call Settlement, this case was able to be resolved without attorney representation by the claimants. |