When settling claims, what document is essential if a claimant has hired an attorney?

When a claimant hires an attorney to represent them in a claim, a Letter of Representation is a crucial document that establishes the attorney-client relationship and informs the insurer that the claimant has legal representation. This letter serves as formal notification to the claims adjuster and insurance company regarding the involvement of the attorney, which can influence how the claim is handled.

The Letter of Representation ensures that all communications regarding the claim go through the attorney, protecting the claimant's rights. It is important for the adjuster to recognize this relationship and work with the attorney, as they are now the primary contact for discussions and negotiations about the claim, including settlement negotiations. By doing so, the adjuster helps maintain compliance with legal protocols and effectively advocates for the claimant's interests through their legal representative.

In settling claims, acknowledging the Letter of Representation is essential in ensuring that proper due process is followed, and that the claimant is represented fairly and legally throughout the process.