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Misdirected Management. (Comment).


I practice insurance defense, and in response to the article, "The Meter Is Running" (October 2001, page 55) I am constantly amazed a·maze  
v. a·mazed, a·maz·ing, a·maz·es

v.tr.
1. To affect with great wonder; astonish. See Synonyms at surprise.

2. Obsolete To bewilder; perplex.

v.intr.
 by the amount of resources some carriers are now putting into litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 management--for all the wrong reasons.

I welcome some of the new "management protocols," because my adjusters are finally having to respond to our litigation plans. Having a team approach to the problem is generally the best and most cost-effective defense. This should be the aim of "litigation management."

But the focus of most litigation management has not been to ensure a good job for the least amount of money, but to cut all costs, in case some lawyer somewhere is over-billing. This is using a cannon instead of a fly swatter fly swatter
n.
An implement used to kill flies or other insects, usually consisting of a piece of plastic or wire mesh attached to a long handle. Also called regionally fly swat.
. The trick is not to "punish" the attorney you are supposed to trust and work with; the trick is to prosecute and disbar To revoke an attorney's license to practice law.

A disbarment proceeding is the investigation into the conduct of a member of the bar in order to determine whether or not that person should be disbarred or disciplined.
 the dishonest one. A carrier should never ask for a refund of attorney overcharging; they should let the prosecutor recover the funds following a conviction. Good companies act with their wallets and take their business where they get the best results for their dollar. The dishonest attorney must be removed from the rolls of licensed attorneys, not totally "managed."

Insurance companies cannot be a member of the team at the same time they are stabbing the captain in the back. Make no mistake--you still get what you pay for. When one carrier consistently refused to reimburse re·im·burse  
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.

2. To pay back or compensate (another party) for money spent or losses incurred.
 us for expressly authorized au·thor·ize  
tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es
1. To grant authority or power to.

2. To give permission for; sanction:
 advanced expenses under the guise of following litigation management, we refused any further work from them. They still do not understand why--claiming our advances were small and we should just "absorb" them. I ask all of you--who is dishonest here and needs better management?
COPYRIGHT 2001 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Author:Griffin, J. David
Publication:Best's Review
Article Type:Brief Article
Date:Dec 1, 2001
Words:292
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