Raleigh Injury Attorney Explains How Insurance Companies Evaluate Claims and Make Settlement Offers in North Carolina

Insurance companies value personal injury claims based on the severity and impact of the injury, the medical treatment required, and the potential future medical costs and lost wages. In order to determine the value of a claim, insurance companies use various methods and tools, including software programs like Colossus. Experienced injury attorneys can use those programs to your advantage.

As discussed below, insurance companies value personal injury claims based on the severity and impact of the injury, the medical treatment required, and the potential future medical costs and lost wages. They use various methods and tools, such as Colossus, to assess the value of a claim, and the victim has the option to negotiate for a higher settlement or file a lawsuit if they are not satisfied with the offer.

Severity of the Injury Is Only One Part of Settlement Value in North Carolina

When an insurance company receives a personal injury claim, the first step is to assess the severity of the injury. This is done by reviewing medical records and consulting with medical experts. You will be required to provide all of your medical records to the insurance carrier as well as between 5-10 years of pre-accident medical records to establish your health and fitness when the incident occurred. The insurance company may also send the victim for an independent medical examination to assess the extent of the injury.

Other Factors Considered By Insurance Carriers in North Carolina

The insurance company will also consider other factors when determining the value of a personal injury claim, such as the victim's age, occupation, and pre-injury earning capacity. If the victim was unable to work due to the injury, the insurance company will also consider the potential loss of future earning capacity. Things like scarring, permanency of the injury, and how horrific the accident was can all impact an insurance carrier’s evaluation.

Insurance Carriers Rely on Computer Software to Calculate Settlements

Colossus is a software program developed by Insurance Services Office (ISO) that is used by many insurance companies to assess the value of personal injury claims. The program takes into account various factors, including the type of injury, the severity of the injury, the length of time the injury is expected to affect the victim, and the cost of medical treatment.

Once the severity of the injury has been determined, the insurance company will use Colossus to calculate the expected future medical costs and lost wages. This is done by inputting data into the program, such as the type of injury, the length of time the injury is expected to affect the victim, and the cost of medical treatment.

In addition to using Colossus, insurance companies may also consult with experts such as economists, vocational rehabilitation specialists, and life care planners to assess the value of a personal injury claim. These experts can provide valuable information on the potential future medical costs and lost wages associated with the injury.

Experienced Injury Attorneys Can Use This Computer Software to Your Advantage in North Carolina

Injury attorneys who are experienced with Colossus and how insurance carriers evaluate cases can use that information to your advantage. For instance, the values assigned by programs like Colossus rely on very technical ICD-10 codes, which are medical billing codes that your doctor uses to charge you for services. Those codes might be buried in your medical records or have to be obtained by calling a hospital’s billing department. Included those ICD-10 codes in a demand letter to the insurance carrier can trigger additional value in the Colossus program, which can result in higher settlement offers by the insurance carrier.

What Information Does an Insurance Carrier Need to Make a Settlement Offer in North Carolina?

Once the insurance company has gathered all the necessary information, it will typically make a settlement offer to the victim. The victim can either accept the offer or negotiate for a higher settlement. If the victim is not satisfied with the settlement offer, they have the option to file a lawsuit against the responsible party. A lawsuit can be a lengthy and expensive process, but it may result in a higher settlement amount.

It is important to note that the value of a personal injury claim is not always straightforward and can be difficult to determine. Insurance companies may use various methods and tools, such as Colossus, to assess the value of a claim, but ultimately it is up to the victim to decide if the settlement offer is fair.

Schedule a Free Case Evaluation With Our Insurance Settlement Lawyers in Raleigh, NC

It is important to note that each case is different, and the specific laws and regulations that apply will depend on the circumstances of the accident. If you have been injured in an accident in North Carolina, it is important to speak with an experienced personal injury lawyer in Raleigh, NC who can help you understand your legal options and pursue the compensation you deserve. Contact us today for a free consultation.