Benefit of an Attorney When Settling a McKinney Car Accident Case

Insurance Companies and Car Accident Claims

Insurance companies tend to value their claims and may set what is known as reserves on claims. Those reserves are a sum of money set aside to potentially settle good claims against them. Those reserves are dictated by the evidence that is in the file. When deciding to settle a McKinney car accident case, the benefit of an attorney may be to make sure the evidence needed is available. This could get complicated because the insurance company is ultimately in control of the file and could set reserves at whatever amount they choose. These reserves may be subject to audits by the Texas Department of Insurance (TDI).

TDI Requirements

If the reserves are found to be inadequate, TDI could require the reserves to be increased. If this inadequacy is found to be consistent over a range of files, TDI has the power to require an insurance company to raise the reserves across the board. When a reserve is set, the money must be taken from insurance assets that have higher return and higher risk. This money is then placed in assets that are a lower return, lower risk liquid – assets that could be liquidated to take care of short-term liability.