After the demand package has been submitted to the insurance company, negotiations will take place between the attorney and the insurance carrier. This is called Pre-Trial Procedures. After negotiations, it is hopeful that a reasonable settlement offer will be obtained. At that point, the settlement offer is conveyed to the client.
The client is not bound by a settlement offer made by the insurance company. Ultimately, the decision on settlement is up to the client and not up to the insurance company and/or lawyer.
It is important that the client listens to the lawyer with regard to any advice he gives concerning a settlement offer, whether favorable or not. Sometimes the insurance company makes offers that seem unacceptable to the attorney, however, it is the obligation of the attorney to at least present that offer to the client.
The attorney will then present the pros and cons of all offers to the client and will give his opinion whether the client should accept or reject the offer. After the attorney’s presentation, the client has the ultimate decision as to whether the offer is acceptable or not. Despite having this power of the final say, clients need to remember why they hire an attorney in the first place.
Because attorneys have substantial experience in handling these should give substantial weight to the recommendations of their attorney. The attorney will then make his recommendations with regard to those offers as well, however, ultimately the client can make a decision on whether they want to accept the money or not.