Adjusters study the circumstances surrounding the investigated event, and then study selected factors.
What losses should be considered in the adjuster’s determination?
• The total for all of the claimant’s medical expenses
• The income lost, during the claimant’s recovery
• Any acquired permanent disability or any permanent disfigurement of some body part
• Loss of family or social experiences
• Loss of an educational opportunity
• Pain and suffering; emotional damage
• Loss of property
Formula used by adjusters
Obtain a dollar value for each of the economic damages; add up all of those values. Use a number between 1.5 and 5 to represent the severity of the claimant’s injuries. In the case of catastrophic injuries, select a number between 5 and 10. Multiply the sum of the value for the damages with the chosen multiplier (1.5-10).
Add to that product the value for the lost income. The result obtained by completing the above calculations should provide the adjuster with a figure that represents the worth of the submitted claim. That figure acts as a guide, during selection of the number that ought to be quoted in the initial bid.
Adjusters usually show the result of the calculations to their superior, and then follow the superior’s instructions. Those instructions could call for calculating a given percent of the amount that has already been calculated, by using the adjuster’s formula.
Other changes to the results obtained by using the adjuster’s formula
Adjusters usually know whether or not a given claimant has chosen to hire an attorney. That information serves as a guide, when it comes time to select that number that should represent the opening bid for a given claimant’s case. Claimants that have failed to hire an injury attorney in Elmhurst should expect to receive a rather low bid. Those that happened to enjoy a lawyer’s support should be ready for a higher bid, and should be ready to respond with a reasonable counteroffer.
Ideally, the adjuster’s formula has yielded a figure that could qualify as a reasonable offer. In that situation, the claimant’s lawyer would probably encourage efforts that were aimed at reaching a settlement. Of course, it would be up to the claimant/client and the adjuster to keep exchanging bids and offers, until the 2 of them were able to agree on one particular figure.
Should a claimant ever ignore the result from calculations that were done with the adjuster’s formula?
Yes, the result of those calculations could be ignored if the victim/claimant had not yet reached the stage of maximum medical improvement (MMI). Personal injury lawyers always tell their clients to delay any negotiations until the treating physician has declared that the treated patient had managed to arrive at the state of MMI.