Is The Insurance Company Doing Enough to Try to Settle the Case?

Often the question arises as to whether an insurance company is doing everything it can and should in order to try to settle a case. On the side of the injured person, the goal is to try to recover fair compensation for the injuries suffered. The at-fault party should want the insurance company to effectuate a settlement to protect him or her from a potential adverse judgment. An Insurance company that does not strive to settle a case may be placing its insured’s personal assets at risk.

Recently, the Ninth Circuit Court of Appeal rejected Allstate Insurance Company’s argument that it did not need to make a settlement offer because the injured person had not made a demand. That case involved a car accident that resulted in injuries to one of the drivers. The injured driver’s medical bills exceeded $108,000. The insurance company had a policy limit of $100,000 per person. Yet, Allstate did not offer its policy limit until it was too late. The injured driver went to trial and obtained a judgment of more than $4 Million.
The Court of Appeal explained that an insurance company has an obligation to attempt to settle a case when liability becomes reasonably clear even in the absence of a settlement demand. The case is Du v. Allstate.