ABSTRACT
This chapter describes the pattern of payments actually obtained according to the files of the Acme Insurance Company. It demonstrates the deviations from formal expectations, and explains in part as consequences of the factors. Automobile liability insurance currently pays $1.5 billion annually to victims of traffic accidents. Payment on the remaining files could be made on one or more of three bases: bodily injury liability, medical payments, or property damage liability. Representation was found to be the most important single factor accounting for payment, apart from liability and damages. An advantage to the attorney in terms of gross recovery was predicted because of the fact that claims men generally evaluate a represented claim more highly than an unrepresented one. The chapter suggests that in some circumstances the insurance company is at a disadvantage in negotiation relative to its position in the formal law.
