Posted By Steve on 15 Apr 2011 07:42 PM
I was referring to, and agree with the situation that was included in Ray Hall’s comment: “mild, meek insureds would really get shorted with estimates and slam bam adjusters if PA,s and plaintiff attorneys did not reopen files.” In my opinion, a reopen file is the proper, necessary, and required place for the PA/lawyer. Not on a claim right out of the box.
Steve, my brother from another Mother !!!!!!!!!
I agree with you 100% that a PA or attorney repd insured from the onset is unnecessary and could be seen as suspect. There is nothing a PA or attorney can do from the onset that the insured themselves could not do on their own.
I believe a PA from the start or an attorney repd insured from the start is nothing short of an insured throwing away money.
Where the PA or plaintiff attorney's are needed is once an insured has exhausted all avenues to receive a "just" settlement from the insurer that will not budge.
The following is a general statement and NOT directed towards Steve. I am also aware most experienced adjusters here on CADO already know this. The reason I am breaking this down like this is because of the thousands of rookie adjusters who learn from reading the discussions between experienced adjusters.
There seems to be a popular misconception that a PA or plaintiff attorney is entitled to 10% to 33% respectively of the entire claim award , this is NOT accurate.
A PA or attorney is entitled to again 10 to 33% respectively of the "additional monies collected" on behalf of the insured from the point the PA or attorney entered into an agreement or contract with said entity's.
Simply put, John Q Homeowner has sustained a loss to an insured risk from a covered peril. Carrier X has determined the loss to be 30,000 dollars(only an example) The insured has multiple estimates that call for 55,000 dollars to bring risk to a pre event condition. The insured requests a reinspection and the carrier responds and either declines any further claim award or concedes to an additional 5,000 dollars. The carrier refuses to another reinspect or simply will not give another nickel.
The insured then retains a PA (Public Adjuster) or an attorney. From that moment, whatever amount collected or agreed to between the insured and the carrier prior to the involvement of a third entity(PA/attorney) is off limits to the third entity.
The PA /attorney is entitled to 10 to 33% respectively of only "Additional monies collected" over and above the original claim award. John Q already received 35,000 dollars from carrier X. The PA/Attorney obtains an additional 25,000 dollars for a total claim award of 60,000 dollars. The PA/Attorney is NOT entitled to a % of the entire claim award. They are only entitled to a % of the additional monies collected by them on behalf of the insured. In this example, they would be entitled to 10 to 33 % respectively of the 25,000 dollar additional claim award.
The only situation where a PA/attorney is entitled to all monies collected is when they have represented the insured from the onset of filing a claim against the carrier.
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