The Allstate Motherlode
I admit I have not had time to read through all of this yet. After all, it is 150,000 pages. But, here are Allstate's Colossus documents and information from McKinsey. More comments to come after I have summarized it all.
I admit I have not had time to read through all of this yet. After all, it is 150,000 pages. But, here are Allstate's Colossus documents and information from McKinsey. More comments to come after I have summarized it all.
I am asked often about whether an attorney should have a select group of doctors to refer cases to or accept cases from. (By the way, if you are an attorney and you want to market your practice differently than everyone else, check out this website from Virginia Attorney Ben Glass. You will stop worrying about getting referrals from doctors.)
I would limit this or avoid it. In the greater Sacramento four county area we have 3 million people or so. We have thousands of chiropractors. Why can’t I do business with most of them? (There are some who I shouldn’t do business with, but those are different reasons.) Sure, I have one or two who are really good who I love to work with. Good notes, good reports, fair bills. Amazingly, the one I am thinking about right now? Never asked her to reduce a bill. Well, I did just ask her to knock 52 cents off a bill, but that was only because it made my math easier. She is great and I think the world of her, but there is a downside…………
Insurance companies now track data like no one’s business. They might put the NSA to shame with the amount of data they collect. Typical scenario: Claimant is struck by a car. A claim is set up with name, date of birth, address. Heck, some claimants, before they get an attorney, will give up a SS#. Now, insurance company can track any prior claims. We all know this happens. But………….
Claimant treats with you. You give your bill to the attorney. At the top of your bill, you list your EIN or some other identifying number. Now, they have a number to plug in for you. Of course, before I can get paid, I have to give up my EIN thanks to the IRS. Now they can track me. So…………..
Next time I send in a letter of representation, they put me into the system and they know which docs I work with. If they see a pattern of me continually representing Dr. X’s patients, they refer the file to SIU. There may be nothing wrong and everything may be on the up and up, but the case is now substantially harder to settle.
That is why I constantly encourage attorneys (and doctors) to have a group of people to refer to. Sure, if someone is involved in an MVA near my favorite doctor and they have no place else to go, I will give out her name. But, in the course of a year, we may only have 6 or 8 cases together. Not a ton. But, it is the best relationship I have. I know that she will be fair, reasonable and give me documentation to settle the case. I also know that she is 100% supportive if I tell her I need to file, serve or even try the case. Complete trust in my ability to practice law. At the same time, she knows she is going to get paid. I will pay her in full before I take a fee. She knows I know what I am doing and will get the client the best possible settlement. It’s a win-win and has nothing to do with volume.
Avoid referrals with one or two or a small group of doctors. The bigger your pool, the easier it is to avoid the SIU trap.
The ABA recently published my newest article on MIST cases. This article provides some basic tips on MIST cases. It is not a supplement for reading the book, but it does give you some basic tips. The outline appears below:
10. Read the literature.
9. Talk to the potential client.
8. Learn to use the internet.
7. Take a look at the cars.
6. Get to know the treating doctor.
5. Set reasonable expectations.
4. Get your discovery done timely.
3. Don't waste money.
2. Be aggressive but fair.
1. Try the cases.
Take a look at the article and let me know what you think.
So, you want to settle a MIST case? Now is the time.
People want to settle claims between Thanksgiving and Christmas. Your clients are looking for money to buy presents. Insurance companies want to get claims off of their adjuster's desks and clear the books. Thus, it creates "The Perfect Storm" where claims can be settled.
So, if you have a claim and are trying to get it settled, now may be a good time to make a demand. You may get a bit less, but if you want to get it done, get out a demand letter this week.
I thought I would share a story with you. I have been working on a MIST case for 3 years now. Client treated with her MD and then a new chiro. The chiro treated her on a lien. When she was done, we made a demand and the offer was zero. Filed the lawsuit and client’s deposition was taken. Poor would be an understatement. But, that is how it goes. Offer went up a bit. We arbitrated the case. (Most cases in California
Moral of the story: a little patience and letting the attorney work up the file properly gets the cases resolved.
I just wanted to share a few updates with you on MIST cases.
A Caliornia attorney got a seven figure verdict on a MIST case. The jury did not buy the junk science defense from the insurance company.
A reader of my book recently hit for $250,000 on a MIST case with MD and DC treatment. Yes, it does work.
Recently, I sent out a demand to a self insured corporation that uses a major insurer as its claims adjusting company. I sent a cc to the risk manager and one to general counsel. The adjuster called and made some ridiculous offer. I replied with a letter, again sending the copies to the risk manager and general counsel. The risk manager called me. Settled the case for four times the specials.
Last update: I settled a case with a self insured company after filing. The settlement was for a minor and approved by the court. The settlement was 10 times the specials with $1,500 in property damage. (I had previously settled the case for the driver, the child's mom.)
Why are these results happening? Because plaintiff attorneys are learning to debunk the junk science and are taking these cases. Look at any industry and you will find the industry leaders do one thing: they learn all about their competition. The attorneys who are successfully handling MIST cases are learning all about the insurance company, handling these cases in the same manner, and studying how to handle them effectively. There is a way to handle these case effectively and efficiently to help your clients. But you must educate yourself.
A new trend is developing: repairing bumpers. Okay, so repairing bumpers is not a new trend. But the insurance industry is pushing training for adjusters on how to repair any bumper, be it a Bentley or a Volvo, undamaged or crumpled.
I recently had a client with bumper damage. The adjuster came out and wanted to repair the bumper - even though the paint was off of the bumper. The car is a year old. They can't match the paint, but the adjuster would only give a couple of hours for repairs.
Clearly, the bumper needed to be replaced and painted to match. But, the adjuster put down for repairs because it keeps the case is a minimum impact. My client will be getting his own estimates now and those will be to replace the bumper.
Make sure you are checking those estimates on MIST cases. A replacement can add $300 or more to an estimate thus making it no longer a minimum impact.
It dawned on me that some people reading this may not know what a MIST case is. So, here are some definitions:
Actual - Minimum Impact, Soft Tissue (M.I.S.T.)
Practical - Any car crash with less than $1,500 in property damage and a soft tissue type injury, i.e. neck or back pain, sometimes called "whiplash."
Note that some insurance companies may call these by other names. These include:
LVI - Low Velocity Impact
LIST - Light Impact Soft Tissue.
