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What motivates and makes an insurance company to pay full value on a claim and pay a claim
promptly. Hi I am Guy DiMartino. I am an injury and accident lawyer and today like to spend
a few minutes and tell you the only thing that really drives an insurance company to
be fair. The thing that drives all insurance companies to pay claims promptly and fairly
is a risk. Insurance companies are in the business of managing risk. They always do
a risk benefit analysis. So an insurance company will promptly pay a claim when the insurance
company perceives that there is a risk. And the risk is this. That there will be a judgment
or verdict against their insured, against the person who purchased insurance from them,
for an amount that is higher than the benefit that was purchased. Because if an insurance
company leaves their insurer at risk, because of an excess verdict, because the insurance
company did not promptly pay a claim and protect the person who purchased insurance from them,
then the insurance company has risk. So if there's $1 million policy out there and somebody
has an injury that on its best day though get $50,000 or $100,000 there is nothing to
light a fire under that insurance company. They can go ahead and drag their feet because
there's plenty of policy limits their to protect their insurer. On the other hand if there
is a smaller policy of insurance, and there is somebody with significant damages, the
insurance company has to be upfront, has to be quick, has to be prompt and has to try
to settle that claim as soon as possible otherwise they can leave their insurer at risk. I'm
guy DiMartino. I am an injury and accident lawyer, and if you have any questions about
insurance claims or an accident claim you can always call me directly on my cell phone.
Thank you and have yourself a great day.