California Personal Injury and Insurance Blog

Good news for Allstate customers?

No, they haven't decided to start paying claims quickly and for a fair amount. That would be like a Lewis Carroll fairytale. Rather, the Dept. of Insurance has ordered Allstate to cut rates by 15%.

Allstate had requested permission for a 7% rate cut. The Department of Insurance wanted a 19% rate cut, according to its calculations. An administrative law judge ordered the 15% rate cut.

Allstate contends it is being unfairly singled out because it is in a fight with the DOI about its homeowners rates. Singled out? I think the decision by the judge supports that the DOI was much closer to the right number than Allstate was.

So, if you are an Allstate insured, expect to see a rate cut from Allstate - assuming it does not appeal.

FAQ: Where does 1/3 of the settlement go?

I have been asked lately about how a settlement breaks down. A lot of people seem to think that there is about 1/3 of the settlement that they never see. Let me see if I can help.

When you settle a case, there is a fee agreement with your attorney. Your attorney may take anywhere from 25 percent to 40 percent (some take more). Assume that your attorney takes thirty three percent (1/3) of the settlement. That leaves 67 percent (2/3) of the settlement. Then the attorney tells you that you get half of that, or 1/3 of the settlement. Where does that other 1/3 go?

Well, in most cases, your doctor or health insurance must be reimbursed. You received treatment for your injuries. The doctor may have treated you on a lien. In that case, the doctor gets paid back. Or, your health insurance may have paid for your treatment. In that case, it may need to be paid back.

In any event, you should ask your attorney for a breakdown of the settlement. He or she should show you where ever cent of your settlement goes.

Telemarketers and Collisions: YUCK!

Well, I was going to use a stronger word, but decided against it since this is a family blog. WOAI in San Antonio has a story on its website about telemarketers who call people who have been in collisions and try to get these people to sign up with attorneys.

Technically, the telemarketer tells the person to go see a clinic to be evaluated at. The clinic then refers the client to the attorney. However, same end result: someone who has been in a collision ends up being called by someone trying to get the collision victim to hire an attorney. It is absolutely disgusting.

This should be perfectly clear: you should make the call to the attorney - not the other way around. If an attorney, or anyone, calls you after a collision, you should not hire that person. It is that simple. You may need an attorney. You may not need an attorney. But, only you know that.

So, do not fall prey to these predators. This disgusting behavior should be outlawed in all 50 states. And every decent trial attorney should support that!