Misrepresenting the Truth to Your Lawyer About Previous Claims Could Be Hazardous to Your Case
What the average client does not know is that insurance companies track all legal claims that an individual makes against homeowners, workmen’s compensation and auto insurance policies. The two major databases that insurance companies use to keep track of previous claims are The Comprehensive Loss Underwriting Exchange (CLUE) and The Automated Property Loss Underwriting System (A-PLUS).
Often times a client will come to the personal injury firm of Reiff & Bily and tell us that they have never been in an accident before. We have no reason to doubt our client, but as a precautionary measure we double check the databases. If we discover that a client has had previous claims, we are obligated to inform them that repeat claims against an insurance carrier may prove hazardous to their case. Unfortunately there are individuals who abuse the legal system by attempting to repeatedly file claims against insurance companies. For this reason the personal injury law firm of Reiff & Bily prefer to limit their cases to catastrophic injuries for clients with repeat claims.
Claim filers should be aware that insurance companies vigilantly check a policyholder’s history and if the policyholder lies, the insurer may decide to drop coverage all together according to the Insurance Information Institute. As all insurance companies have access to claim histories, such persons may have a difficult time finding new coverage.
We recommend that individuals refrain from filing minor claims as in the long run it will affect the premiums paid for their insurance.
