Lawsuits and Insurance....?

[Gulfman]

Lawyers and Lawsuits....?

I'm just wondering, with all the money that insurance companies have, WHY ON EARTH do they allow frivolous lawsuits to continue?

1. -they have a strong lobby, don't they?
2. -maybe its in their interest (insurance co.) to see more lawsuits?
3. -Is it really in their interest to settle claims (frivolous ones)?
4. -Why don't they fight these lawsuits to the End?

Here's a site written by 2 civil defense lawyers...decrying the BS involved in litigating Civil suits in the USA.

Judicial Hellholes

Thoughts/opinions?

 

[Tkruger]

There is a large portion of those posts associated with FL. There is a large number of PIA's (personal injury attorneys) in FL in general.

 

[FL P&C Broker]

He have been a huge problem here with assignment of benefits and roof claims from fraudulent hail claims. The insurance companies are finally starting to fight them.

 

[AZDave]

Just look at any state that has tried to change tort liability laws and see the opposition. The attorney lobby is very powerful. Probably 1/2 of each State's legislature are attorneys.

What seems frivolous to one person, is bad faith to another.

Agree, it is sick to see so many bogus lawsuits.

I remember a parking lot auto incident. Less than $300 pd claim and the carrier paid over $20,000 to the injured parties inside. Sick. Scumbags attorneys everywhere.

 

[Tkruger]

 

[Gulfman]

Friggin PI Attorneys...create No Value for Society (unless you want to pull a scam)...and drive up rates for the rest of society.

I guess that's good for agents (and good for insurance co's.), which is why i'm inclined to think that INS.co's, AREN'T REALLY THAT CONCERNED.

Insurance has inelastic demand (it seems) and ppl pay, because they have to.



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All Class....!

 

[Tkruger]

It makes you wonder if they are in it for the same thing....oh wait...

 

[Gulfman]

It makes you wonder if they are in it for the same thing....oh wait...

Kinda makes sense.

Enough lawsuits, people see this, and get scared *hitless. Call their agent and get coverage. More premiums for insurance companies! ----> Ehh....BINGO !


http://www.wci360.com/news/article/annual-list-of-judicial-hellholes-announced



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[Arnage150]

Lawyers and Lawsuits....?

I'm just wondering, with all the money that insurance companies have, WHY ON EARTH do they allow frivolous lawsuits to continue?

1. -they have a strong lobby, don't they?
2. -maybe its in their interest (insurance co.) to see more lawsuits?
3. -Is it really in their interest to settle claims (frivolous ones)?
4. -Why don't they fight these lawsuits to the End?

Here's a site written by 2 civil defense lawyers...decrying the BS involved in litigating Civil suits in the USA.

Judicial Hellholes

Thoughts/opinions?

I'll take a stab at a few of your questions.

1) Remember many politicians start out as attorneys and move into politics. Because of that they have strong relationships with large legal firms. I would guess that those legal firms helped get those people into office. Don't bite the hand that feeds you.

2) Most insurance companies don't have in house legal council so they pay for it per hour just like you or I would to a third party firm. Maybe they negotiate a better rate because of the volume but they are still paying a lot of money to attorneys. Insurance companies aren't dumb (or are they?) so they know what cases should be settled and which ones should go the distance.
Personally I've gone the distance in some legal cases and spent $50k+ in attorneys fees alone.

3) I've noticed over the years that many insurance companies make money on their investments, bonds, stocks...etc. Let's say they invest 5% of their gross sales per year. If it were a perfect world and there were no fraudulent claims the average auto premium would be $500 a year. Because of all the fraud they are $1,000 a year. What do you make more money on, 5% of $500 or 5% of $1,000?

 

[shawnmwalker]

I just saw that someone was suing Starbucks for putting too much ice in their Iced Drinks.