Release Agreements and “The Swoop and Settle”

There are many reasons a victim of another person’s negligence should hire an injury lawyer following a car crash, slip-and-fall, or other accident. This post discusses another reason: the “swoop and settle” insurance technique.

How Are Insurance Companies Using Releases?

My firm has seen an increase in instances when an insurance company tries to settle a claim immediately after an accident. Usually, a claims adjuster reaches out to the victim within days of the accident—and before the victim hires an attorney—to offer an “inconvenience payment” or some other type of compensation for the victim’s injuries. The adjuster asks the victim for his or her bank information and agrees to deposit the funds after the victim signs various documents, including a release. 

What is a Release?

A release is an agreement in which one party agrees to hold another party without responsibility for liability or damages arising from a given occurrence, like an auto collision or a slip-and-fall. Essentially, a release prevents an injured victim from recovering anything not stated in its terms. In Texas, agreements that release another party from liability or damages for negligence are generally valid.

Should I Sign a Release After an Accident?

A release prevents an injured victim from pursuing a claim or lawsuit against the at-fault driver and the driver’s liability insurer ever again. The finality of a release is why liability carriers “swoop and settle” injured victims to convince them to release their claims quickly and for less than the fair value as soon as possible. However, since the at-fault driver’s liability carrier is not required to act in good faith when settling claims, the terms of these releases almost always favor the liability carrier over the victim. For instance, these “inconvenience payments” very rarely cover all of the victim’s medical bills and virtually never consider any necessary future medical treatment. Unfortunately, it is almost impossible for an accident attorney to help an injured victim re-open a claim after the victim signs a release. Thus, a victim should not sign or accept anything from an insurance company unless he or she speaks with an experienced injury lawyer beforehand.

Hire an Experienced Injury Lawyer Immediately After a Car Wreck or Other Accident

If someone’s negligence injures you or a loved one, you have enough things to worry about. Do not let negotiating with an insurance company be one of them. We deal with the insurance company so you can focus on getting your life back to normal. You have one chance to do this; make the right choice by choosing the right attorney. Call us at (956) 291-7870 or email us at contact@rdjlawyer.com for a free consultation and case evaluation.