How to get sued for $1.5 million for personal injury while taking a shower.

[pnwmom]

81. Do you have statistics that prove the norm you're claiming?

If insurance companies typically settle smaller cases, then a plaintiff's attorney might assume that they will settle with him, too. That attorney might expect insurance company lawyers to assume, as you have in this case, that the plaintiff is acting in good faith and the injury is real.

http://www.ama-assn.org/amednews/2011/05/23/prca0523.htm

A 1999 Rhode Island case, Asermely v. Allstate Insurance Co., established a strict rule that often prompts insurance carriers to settle rather than risk the cost of losing at trial.

In that case, the Rhode Island Supreme Court ruled that insurers who reject settlements within the insured's policy limits are financially responsible for subsequent trial awards exceeding those policy limits.

"It's a huge burden [for insurance companies]. It's staggering," said Michael Sarli, attorney for Medical Malpractice Joint Underwriting Assn. of Rhode Island. "Every state has a tweak on the standard, but our state's is pretty cut and dry."



http://tort.laws.com/liability-insurance

Deficiencies:

There are many deficiencies in liability insurance and in tort law cases. First, the victims can no always afford proper legal representation, especially when they are facing big insurance companies with unlimited resources. There are also cases in which the alleged victims take part in a frivolous lawsuit in hopes of getting compensation judgements, even though no real harm was done. For that reason, the courts in many jurisdictions have placed a cap, or maximum on allowable awards.

In contrast, the accused may have a benefit in tort liability cases, if they have a liability insurance company representing their case. The liability insurance companies do everything in their power to avoid large payouts, especially when they believe it can be avoided. In some cases, it is cheaper for the accused and the victim, to settle outside of court. Unfortunately, some tort liability cases include settlements even when the accused is obviously innocent. Liability insurance companies may choose to settle simply because it is cheaper than the costs involved with taking the case to court.