Dolman Law Group
We recently learned that Farmers insurance Company has begun utilizing Colossus in their evaluation of automobile injury claims. This coincides with a recent spike in advertising by the insurance giant. Colossus was designed to help insurance companies value automobile and motorcycle accident related injury claims based upon region and a host of other criteria. The program’s purpose is to eliminate human evaluation and maintain a uniform standard for claim evaluation.
The big issue with Colossus is that individuals perform baselines for claims evaluation and input and with any computer program it can be manipulated and misused. Insurance companies have linked to lowering the baselines or standards by up to twenty percent (20%) to save even more money in the payout of claims. This mismanagement of the software is now the biggest concern for personal injury attorneys. The program is completely reliant on adjusters entering the correct information in regards to the claim. Small mistakes can drastically reduce the settlement value.
Farmers’ has taken this one step further by instituting a nationwide goal of finding fifteen percent liability to a collateral source. This practice has been encouraged along with increasing the ranges of what is considered “slight”, “moderate”, or “major” impact and property damage. Other tactics include intentionally leaving out second opinions or independent medical exams that would increase or raise the value auto accident injury related claim in colossus.
Many insurance carriers such as Allstate utilize a different variation of Colossus, which cuts off treatment regardless of severity of injury or accident after a pre-determined standard number of visits.
This completely ignores the human element of impact, property damage, diagnostic studies, and is just an arbitrary number set by a computer program designed to mitigate damages. Some Colossus derivative programs even take into account physicians and attorneys by identifying them by their tax identification numbers. The settlements that attorneys receive are part of the calculations.
Thus, if an attorney or law firm routinely settles for lower amounts this is calculated into the software, which will in turn generate a lower settlement offer. Doctors are calculated in much the same way. That’s why it’s important to hire an attorney that actively litigates cases. At Dolman Law Group, we pride ourselves on maintaining an active litigation calendar in Pinellas and Hillsborough County
In order to properly combat a claims management program like colossus or a derivative of such which is utilized by a majority of insurance carriers, the attorney must be committed to litigating the case and not accepting diminutive settlement offers. It is imperative that all complaints and diagnosis are provided to the insurance carrier to preserve the claim of unfair claims handling and bad faith.
The covenant of good faith and fair dealings is implied in every insurance contract/policy. Thus, to prove that the carrier has deviated from its fiduciary duty, the personal injury attorney must demonstrate that the handling claims adjuster has acted unreasonably. This can be demonstrated by the reliance on a computer software program, which eliminates thought process and simple human factors. Clearwater car accident attorney also know as a “Clearwater automobile accident attorney“, can definitely help you understand more.
Contact us:
Dolman Law Group at: (727) 451-6900 or email us at: matt@dolmanlaw.com
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