Expert: Richard Hixenbaugh - 8/13/2009

Question
I recently arrived at a settlement value for a minor, not-at-fault auto case, and have just received the "very intimidating" claim release form--which I'm suddenly scared to sign. But my experience with this whole negotiating process (it's been nearly a year because I'm not in a hurry and want to ensure the body's reasonably healed), has me wondering a few things.
1) I only communicated in writing with the claims rep. and had the distinct feeling she had a signature / approval limit because it took a couple weeks for her responses. Is that part of the structure?
2) If so, what are the typical range breakouts? <$25k, then $25-$50k?
3) Are these ranges based on the total presumed value of the loss--PI and PD in total, or completely separate?
4) When determining which CR is assigned a case, is the assignment made on the carrier's assumption of risk and value? (rookies get the low risk cases up to $25k?).  How does all this typically work?
5) Are there different CR's for property and PI? I had a nice lady until my car got fixed, and then the case was assumed by a different person / office.
6) Is the motivation / priority for the CR to close the case in a certain period of time, or is it more important to fight and stick to not exceeding her sig. level?

I ask because it seemed once we got close to a certain number ($22K), talks really slowed, and the incremental offers really shrunk down to the low hundreds where they were in excess of $1k at the outset.  I'd really like to know what goes on behind the CR curtain if you could share.

Answer
Hi Mark,

I'm not sure why the adjusters settlement limit is important to you, but yes an adjusters level of settlement authority is based on their experience in handling a particular type of claim. It is different at each company so there is no blanket answer. Injury and property damage claims are often handled by different adjusters because they require different skill sets. In some cases the adjuster will handle both up to a certain level of complexity then may be split.

If you have reached an amount that both you and the adjuster have agreed to then it is not an issue. Simply sign the release form and send it back and they will send you a check. If you feel that the amount is not enough to settle your claim then you shoudl continue to negotiate.

I hope this helps
Richard Hixenbaugh