When filing “boilerplate allegations” or claiming ignorance of facts already known (and easily capable of being verified), insurance defense lawyers are abusing our civil justice system no less than the frivolous lawsuits they are always complaining about. Having witnessed firsthand the stalling tactics of the major insurance companies, it is surprising that Americans do not call the carriers out for their collective “Lawsuit Abuse.” By way of example, there are several car insurance companies that clutter our courts with unnecessary litigation. Think about it, does the delay help the injured victim or the insurance company that has collected the premiums from their policy holders ?
The insurance company has the use of the money after the car wreck and while the litigation is pending. The reserves (money put “aside” to pay a claim) and the insurance company’s investments are not subject to the same taxes that you and I pay. If an insurance company has $100,000 in coverage for a car crash case, and they can delay the “day of judgement” at trial for 3 years, then even if they pay the full policy limits of $100,000, their lawyers and court costs will have been nothing ! Their insured may be exposed to “excess liability” if the verdict is more than the amount of coverage purchased. But does the car insurance company care ? Probably not – they probably made money on the deal ! In other words, the money the insurance company has made (and not paid taxes on) on reserves and investments may more than pay for their lawyers, doctors and other “hired guns.” How can any logical person suggest that this lawsuit abuse and forcing the filing and delay by “frivolous defenses” helps the injured victim or disabled person’s family ?
In tomorrow’s post, we will look at what some insurance companies have done to remove the “person” from “personal injury.”