Process for Insurance Claims for Wrongful Termination Settlements

The following is an article on the steps that should be taken when a person has been wrongfully terminated, in regards to the insurance claims. Hope it will be useful and help those who are not in the know on what to do.

Formalizing Settlement

When an offer to settle a wrongful termination claim involving insurance is accepted, the normal procedure is for the insurance company to prepare a release of claims against the insured--that is the employer against whom the claim was made. This will usually be done by the attorneys representing the insurance company. The release may also include a release of claims against the insurance company for any potential claims you might have against the company. If such a release is to be included, this issue should be negotiated before finalizing the settlement. You may be required to have your signature notarized on the release. The release will also specify the terms of payment either as a lump sum or instalments.

Lump Sum Payment

A lump sum payment should be made in the amount stated in the release and can be made by check, wire or draft. If you handled the claim yourself, the payment will be sent directly to you. If the payment is to be delivered to your attorney, some states require that you be notified directly in writing that the payment was delivered along with any cover letter that accompanied the settlement payment. After receipt by your attorney, the settlement payment should be disbursed by your attorney according to the retainer agreement you signed with her.

Structured Settlement

A structured settlement means the insurance company will make installment payments to you over time. The insurance company typically purchases an annuity to fund the settlement to make the regular payments. You may be require to sign a separate agreement for a structured settlement that would contain more specificity regarding the terms of payment than will be set forth in the release. An important point to keep in mind regarding structured settlement annuities is that further court proceedings may be required if you even desire to sell your right to receive the annuity payments for a lump sum.

Dismissal of Proceedings

If a lawsuit was filed on your claim, a dismissal will be prepared and filed with the court. Your attorney will usually prepare, sign and file the document once the settlement payment has been delivered or the structured settlement annuity put in place. In cases where the employer may have filed a cross-claim in the lawsuit against you, this should also be part of the dismissal. If the claim was being arbitrated rather than going through the court, there should be a document indicating that the arbitrator was notified of the settlement and that he was instructed to close the arbitration file.

By Joe Stone
http://www.ehow.com/how-does_5572611_process-claims-wrongful-termination-settlements.html