Detailed Answer
When an insurance adjuster in Rhode Island issues an initial settlement proposal, that number usually represents the insurer’s starting point—not the full value of your claim. Presenting a counteroffer helps you protect your rights and pursue a fair outcome. Here are the key steps and legal considerations under Rhode Island law:
1. Evaluate Your Damages
Gather all documentation: medical bills, repair estimates, lost-wage records and receipts for out-of-pocket expenses. Summarize your economic losses and assign a reasonable value to non-economic damages, such as pain and suffering.
2. Understand the Legal Framework
Rhode Island prohibits unfair claim-settlement practices, including lowball offers and unreasonable delays. See R.I. Gen. Laws § 27-9.1-2. If an insurer violates these rules, you may have recourse for bad faith handling of your claim.
3. Draft a Clear Demand Letter
Present your counteroffer in writing. Include:
- A concise statement of facts and liability.
- Breakdown of your damages with supporting documents.
- Your total settlement figure and a deadline for response (typically 30 days).
4. Negotiate Professionally
After submitting your demand letter, the insurer may respond with a higher offer or further questions. Remain calm, respond promptly, and provide additional evidence if needed.
5. Know When to Seek Help
If negotiations stall or the insurer refuses to budge despite strong documentation, consider consulting a local attorney experienced in Rhode Island insurance law. An attorney can evaluate your claim for bad-faith settlement practices and advise on next steps.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a licensed attorney for advice regarding your specific situation.
Helpful Hints
- Keep all correspondence in writing to maintain a clear paper trail.
- Use certified mail or email delivery receipts when sending your demand letter.
- Set realistic deadlines to encourage timely responses.
- Document all phone calls, including date, time, adjuster’s name and key points discussed.
- Review Rhode Island’s statute on unfair claims: R.I. Gen. Laws § 27-9.1-1.