There are many advantages to resolving insurance coverage cases as quickly as possible. Many of these cases are disposed of through what is known as declaratory judgment actions. These many be handled differently depending on state and different courtrooms. It is imperative to hire local counsel when it comes to insurance defense law. Your attorney should be knowledgeable of all laws in a particular state and courtroom in order for successful resolution of insurance coverage disputes. Your attorney will help you prepare and file motions and make very important strategic decisions.
Insurers gain a lot from obtaining a declaration of no coverage as early as they possibly can. Some of these advantages are included below.
Insurers will often get reduced attorney fees. Under certain circumstances, an insurer's obligation to investigate or defend underlying cases is waived. It is best to get things done as quickly as possible. This will help to lead the insurer to an economical resolution. It will also save time and hassle on the part of the insurer.
There is also a minimization in the amount of discovery time when a resolution is reached in a quick manner. The longer that it takes the more chances there are of evidence being discovered that will create reasons why a plaintiff needs coverage. The plaintiff's attorney and the plaintiff themselves will constantly continue to search for evidence and proof to make their case stronger.
If the insured person has counsel that is not experienced, quick resolution helps to eliminate the amount of time that the attorney has in developing strategy on behalf of the plaintiff. It is to the advantage of the insurer not to give the plaintiff any more extra time that what they absolutely have to. The plaintiff's attorney will be working very hard to create the most solid case that they can. It is important that they have the most minimal time. This is especially true if the plaintiff is working with a very experienced attorney.
Standards for declaratory judgment vary widely. This is from state to state, district to district, and even judge to judge.
It is vital to your case to have litigation attorneys that have knowledge of insurance defense law within the local area. There are many advantages to this. Strategy and strategic decisions will be more to your advantage as an insurer. It will save time and reduce overall costs. All parties usually know the attorneys who are local. This gives you as the insurer a certain amount of automatic credibility. This would not otherwise be achieved. There are certain agreements and other actions that will often take place when all parties know each other. That would not happen if not all parties knew your attorney.
The main goals of declaratory judgment actions are to provide a remedy to the insurer before the insured takes initiative, minimize loss, avoid multiple suits, and obtain an economical resolution. You need to be protected as an insurer who probably faces many lawsuits.
This is not legal advice.
Website Resource: The Law Group of Snyder Law. Serving Lakewood Ranch and Bradenton, FL.
Tuesday, 06 April 2010 04:54
Declaratory Judgment in Insurance CasesWritten by Rizwan Butt
Published in Business Law
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