involvedIn claims based on large loses, the claimants threat to litigate becomes more creditable, and denial thus becomes more difficult. Lawrence H. Ross goes on and explains that settlements are also favored by how affluent, educated, and what race you are. For example a whit male that has graduated from college is more likely to achieve his claim than an individual with no high school education and is a minority.When the purchasing agent and insurance claim agent recognize disputes they are handled in different ways. The purchasing agent will handle the disputes in negotiations or as far as waiving the contract agreement in favor of maintaining the business relationship. The purchasing agent will only resort to litigations when all other options have been exhausted. The insurance agent handles disputes in a wholesale approach. The insurance agent is looking for what is best for the company, which does not always coincide with what is best for the customer. Lawrence H. Ross sums it up nicely, The company like a casino, which is able to translate a large number of gamblers into mathematical certainty is indifferent between these outcomes and can demand a concession for the definite settlement. That is to say, because the insurance agent knows which files to drop and which ones he has to pay out, he will make money for the insurance company in the long run. Also the insurance companies have developed a long and drawn out process that might take years for a claim to settle. The insurance companies know that more than likely the claimant will opt for a quick settlement for a smaller sum of money.The objective for the purchasing agent and insurance claim agent in avoiding such disputes is to make money for their companies. Though their objective is the same their approach is different. The motive for the purchasing agent is to stay in business by maintaining good relationships with the consumer. The insurance companies on t...
