Our firm has been instrumental in convincing insurance companies to pay attorney fees as part of the total resolution of no fault claims. Recently, the firm has had many cases settle with the payment of attorney fees as part of the claim. While attorneys do not like to pay those fees, sometimes it becomes necessary because the exposure to such fees can be so high.
The law holds that if an insurer does not pay benefits within thirty days of receipt of reasonable proof, then they run the risk of being on the hook for the payment of attorney fees. This is especially true if the Jury finds that the refusal to pay or delay in payment was unreasonable and awards penalty interest.
The insurance company assumes the risk that the decision to terminate benefits or delay payment was reasonable. In fact, there is a presumption of unreasonableness for every delay made by an insurance company.