more than the money, though. Normally,
when someone tells you that something
is “not about the money,” you should
grip your pocketbook a little tighter. This
time, though, it really is not.
Reading Between the Lines
What do insurance companies sell?
You could say service, protection, coverage, or even say peace of mind. All of
those things, though, are wrong. Insurance companies sell contracts. You offer
to provide financial benefits when certain conditions are met in exchange for
acceptance and consideration. The customer accepts the company’s offer to insure them by signing the application and
provides consideration when paying the
premium, and voilà: a valid, enforceable
contract is now in effect.
To entice acceptance and the all-important consideration, your company
uses a variety of marketing tactics. In
every contract you sell, the consideration
that the company brings to the table is defined in the insuring agreements. To de-
Helping your employees develop a discerning eye
when evaluating cases for potential comparative
negligence is a relatively simple project, and one that
can lead to a slew of quantifiable improvements.
fine liability, a statement in the contract
reads that you “will pay to settle or defend
any claim for which our policyholder becomes legally liable,” or likely something
Is a company really living up to the
agreement if it fails to correctly settle
cases with comparative negligence? It
may pay to “settle or defend,” but whose
decision is that really? The claim representatives hold that authority, or at least
the claim departments.
The Fine Print
Anytime you see an “or” clause in a
contract, take note. It means that a con-
dition has to be ascertained in order for
the contract clause to be properly inter-
preted. In this case, we are contractually
bound to “settle or defend” based com-
pletely on whether or not our insured is
legally liable. Herein lies a potential con-
flict when the comparative negligence of
the other party is ignored.