FAMR 361 11 3 16 - On Farmer\'s Insurance Guest Speaker; Accident Facts/Hypothetical Accident PDF

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On Farmer's Insurance Guest Speaker; Accident Facts/Hypothetical Accident...

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FAMR 361 - 11/3/16 Last Class: Assignment 5 second half

Guest Speaker (Head of claims insurance/auto) - Farmer’s Insurance

- Farmer’s has been around for 90 years - 50,000 independent firms, 25,000 jobs - If you’re thinking about working at Farmer’s, a trainee would make around $48,000 per year (need college degree)

• You’ll be very well off by the time you retire • Access to lot of opportunities through Farmer’s • Free parking • A lot of good benefits • Don’t need a particular major, it’s mostly about behavior (critical thinking, dealing with customers, objective, good judgement, etc.)

- As a claims adjuster, you’re in charge of getting people’s lives together after an accident

- Guest speaker background • Graduate of UH Manoa • Wanted to graduate in architecture, but eventually become an insurance adjuster after meeting with employment agency

• Got involved in many types of different insurance • Learned many business skills - There are various things you can get insurance for (pets, jewelry, car, electronics, etc.)

Accident Facts:

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- This is a two car rear end accident. - The Farmer’s insured was driving her 2007 Honda Civic - The other vehicle was a 1998 Toyota Sienna Van with four adults and one minor - All four adults claimed that they were injured as a result of the impact. • Who is at fault? The Honda Civic • The damage to the 1998 could be covered by Property Damage Insurance • The injury to the adults could be covered by Personal Injury Protection

Injuries:

- Plaintiff #1 • Driver 42 year old male. Married to plaintiff #2 • As a result of the impact, plaintiff contends he still has neck complaints • Difficulty moving his neck in all directions • Continued upper back symptoms with activities such as reaching out and picking things up

• Numbness and lack of strength in arms • Can’t lift heavy things • Medical bills over $8,000 • He is a security officer. Wage loss claim is over $8,800 • Loss of consortium - What kind of coverage pays for things other than medical insurance? • Bodily Injury Liability - Plaintiff #2 • 34 year old female • As result of the accident, now she has neck pain, back pain • Medical bills also over $8,000 2

• No wage loss claim • Loss of consortium - She does not qualify for a BI liability - Plaintiff #3 • 45 year old former boxer • Neck pain, low back and hip pain, shoulder complications • Medical bills over $6,000 - Qualifies for BI liability claim - Plaintiff #4 • 36 year old male • Low back pain, had a prior back surgery • Medical bill over $8,000 • Works as a housekeeper. Wage loss is over $2,000 - What would their BI claims be worth? Would it be more than their medical expenses? - All four retained the same attorney - Demand: • #1 and #2 - $70,000 • #3 - $36,000 • #4 - $50,000 - It’s a bit too much of a demand for minor neck and back pain - The merits of the claims were addressed, but negotiations reached an impasse. - Subsequently, their attorney filed a lawsuit on behalf of each plaintiff. Their lawsuits were consolidated for the purposes of trial

- CAAP Award: expert determined amounts • #1 - around $22,000 for medical, special, and general losses • #2 - around $13,000 3

• #3 - around $13,000 • #4 - around $14,000 - Is this too much money? Yes, we felt this was still a little unreasonable - Farmer’s decided to look into the accident a little further and investigate everyone’s claims

- Are their complaints legitimate?

Trial:

- Plaintiff’s case: • Defendant admitted to rear ending the plaintiff’s vehicle • Everyone had the same description of impact • Everyone claimed they felt nauseated and dizzy • Each described their injuries and complaints • Each had their primary care physicians to testify their injuries, and that all their medical treatment was reasonable/necessary

• The defendant had no experts to dispute the nature and extent of injuries claimed by each of the plaintiffs

- Defendant’s case: • Relied upon inconsistencies in plaintiff’s testimony • Relied upon the testimony of the defendant - With this information, most would think that the plaintiff’s case would win - Why didn’t Farmer’s get an expert to refute the plaintiff’s claims? • Pictures show that there was extremely minor damage to both cars • Some of the inconsistencies of the plaintiff’s testimonies were pointed out - The 4 people who were complaining were completely fine at the point of the accident, and even went to go to a barbecue

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- The boxer claimed the accident was harder than any hit he received, harder than the time he got knocked out

- The housekeeper was caught on film with no serious neck injury - The “accident” was shown to be at a green light, and thinking the car in front of her was going to move, the defendant slightly tapped the plaintiff’s car from the back

- Jury awarded nothing to the plaintiffs in light of all the facts of the accident

This is why insurance is important:

- If you get sued, your insurance company pays for all your expenses - If you don’t have insurance, it’ll affect many aspects of your life (revoked license, bad credit)

- If the person who causes the accident doesn’t have insurance, your collision coverage will pay for the damages

• Can take to court, but the person doesn’t have to pay, he’ll only have a judgement against him

• At this point, you can petition for his license to be revoked, but that doesn’t necessarily stop them from driving

- If they get caught without their license, they’ll probably get a ticket • Sometimes, the car might be repossessed - Many drivers in Hawaii don’t have insurance, even though it’s mandatory • Life happens, makes paying for insurance difficult - DUI violation • Premium will most likely double on the first violation - At the time of accident, should you call the police or negotiate with the person? • Even if it seems minor, it’s probably best to call the police and your insurance company right away

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- The longer you take to report it, the more problems you’ll have with your own insurance

• Sometimes, people will do whatever they can to get out of payment • Sometimes there are circumstances that aren’t thought about at the time of the accident

• Even if they didn’t have insurance, it’s not your fault. - At the time of a hit and run, what should you do? • It’s still probably better to report it to the police • Many people would’ve probably seen it • The insurance company will look for possible ways to help you - Certain brands of cars will have higher comprehension coverage because they’re seen as more popular and more likely to get stolen

- As for the moped accident at UH Manoa, insurance isn’t required for mopeds, so the medical expense would be covered by Personal Injury Protection

• It doesn’t matter what car you’re in, if you have PIP, it’ll protect you in terms of medical bills

• Parent’s policy could also pay for his medical coverage - If had had neither, his health insurance would probably cover it • If the person’s injuries exceeded $5,000, he might be able to file BI claims against the one who hit him, but it’s not absolute. He might not get covered because he wasn’t driving an automobile. BI is attached to the automobile.

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