After Refusing $30K Settlement Offer, Bad Faith Suit May Cost GEICO $2.7M

By Jim Sams | September 29, 2020

  • September 29, 2020 at 8:21 pm
    Martin Francis says:
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    GEICO has to train its people not to reject a $30k settlement offer in a situation such as this; although it is uncommon. Very boneheaded on the GEICO adjuster’s part–and conceivably the adjuster’s supervisor.
    However, the settlement offer of $30k was made after the $2.9M default judgment, which arose out of an uncontested lawsuit GEICO was not even aware of. Further the Court would not set aside the default judgment of$2.9M for a $10k medical fee case.
    Lesson for insurers: Train your folks and system better. Rethink your business models; U.S. litigation is out of control.

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