Comments on: Liability roundup

By: gitarcarver

gitarcarver — Fri, 23 Dec 2016 16:46:56 +0000

Bill Poser,

Here’s why…

Say the homeowner has water damage to their dwelling. A company comes in and says “we can fix that for $1000.” The price is low and competitive because the company wants the business.

On the other hand, when the benefit is assigned to the company, they no longer have the “restriction” of competing in the market. If their estimate goes up a buck or if they suddenly find more damage, they can sue the insurance company for the added costs AND get attorney fees. The insurance company, in defending themselves, cannot recover costs.

It means that the repair companies to which the benefits were assigned and their attorneys have no skin in the game, no risk, and great reward.

By: Abby

Abby — Fri, 23 Dec 2016 06:58:50 +0000

In reply to mx. Couldn't agree more!

By: Bill Poser

Bill Poser — Wed, 21 Dec 2016 21:57:37 +0000

Why does assignment of benefits increase the number of lawsuits against insurers? if the damage is covered by the policy and it costs a certain amount to repair, why does it matter whether the home owner files the claim or the repair company?

By: mx

mx — Wed, 21 Dec 2016 19:22:55 +0000

“Recent easing of lawsuit crisis in U.S. owes much to rise of arbitration.”

I think you typo’d “the continued ability for large businesses to screw over millions of people at once and leave them with no recourse” there.