an insurance company hires a mediator to try to settle a claim if the mediator listens to both sides and then votes for me do you think he will be hired by the insurance compay again to work for them?
2007-01-14 23:43:27 · 4 answers · asked by gillster7777 1 in Business & Finance ➔ Insurance
Settling a claim actually saves the insurance company a TON of money. At the beginning of the claim, when it is first opened, the adjuster has to set a "reserve" amount for damage. This money is flagged, and is set aside from the insurance company general funds (oversimplified, sorry), to possibly pay for this claim. Until your claim is closed, this money counts AGAINST the insurance company assets.
So the mediator, in getting the claim closed, DOES save the insurance company money, and helps their rating by having the claim closed in the first place.
2007-01-15 00:33:14 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Mediators are independent people, usually retired judges or professionals in the particular field. Check to see if the mediation is non-binding, because then you are given the choice to reject the mediators offer, but their job is to bring a meeting of the minds by basically arguing with both sides about the relative strengths and weaknesses of their cases.
Usually, mediations are paid equally both both sides, so check that you aren't expected to contribute to the fees.
2007-01-15 08:10:43 · answer #2 · answered by jerry 5 · 0⤊ 0⤋
In theory mediators should be independent, not too sure what to suggest to you other than maybe asking the insurance company their procedures for employing a mediator and if you can have any opportunity to have some input into who the mediator is
2007-01-15 07:50:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes because he saved the insurance company a lot of money. Consider what it would have cost the company if their lawyers got into it and everything went to court. Even though they lost, they are wayyyyy ahead.
2007-01-15 08:25:16 · answer #4 · answered by ttpawpaw 7 · 0⤊ 0⤋