What Is a Letter of Representation In Insurance?

A letter of representation to an insurer is a document that serves as a formal notice to the insurance provider. The assertive letter is treated as an official and formal document that is printed on the letterhead of a law firm. The document acts as a beginning point of communication between the Cumis counsel and the insurance carrier.

The letter introduces the attorney to the insurance company, and explains that communication from the insurance company ought to be directed at the attorney, rather than the insured.

When Is a Letter of Representation needed?

The majority of the population has insurance plans in case there’re some unfortunate happenings. Getting a claim from an insurance provider can be challenging and time-consuming. In some instances, the interests of the insurer and the insured may not be aligned resulting in hiring a Cumis counsel.

When there’s a conflict of interest between the insured and the insurer, the attorney of the covered party takes over the communication with the insurer by sending a letter of representation. The elements of a letter of representation to an insurance provider are covered in this article. Here’s all you need to know about this letter, starting with the definition of the document.

What Does a Letter of Representation Mean?

A letter of representation shows and confirms that the insured has retained legal counsel and is committed to obtaining a settlement. A Cumis counsel uses the assertive document to confirm coverage for the unfortunate event and appeal vital information like a copy of the applicable insurance policy. The letter offers the contact information of the attorney to the insurance claims adjuster.

The formal document is proof that the legal representative of the insurer is going to claim the settlement on behalf of the insured. The insured will not need to correspond with the claims adjuster.

How is a letter of Representation Written? 

An effective letter of representation to the insurance carrier should be drafted in a detailed and clear way. The document ought to be powerful and contain information about the insured party, the opposing counsel, and the purpose of being represented. Below is a complete guide on how to write a letter of representation to the insurance provider.

Step 1

The overall template of the assertive document is the most important factor. The letter should start with the sender’s address, sender’s email address, date, name of the receiver, address of the receiver, and the ‘REFERENCE” addressing the insurance company. Input the client’s name, claim number, date of the unfortunate event, and name of the policyholder.

Step 2 

The body of the letter should then follow beginning with the abbreviations “Dear Mr. ABC”. The body should be in a formal tone stating the purpose behind writing the letter and stating the accident briefly and clearly. Mention the exact date of the event, details of the casualty, and policy number.

Step 3

Complete the letter of representation in insurance with a signature in your name and stamp.

Do I Need a Letter of Representation?

In case of an accident, the victim may believe the occurrence was up-front and there’re no issues while claiming a settlement. Having a letter of representation helps the insured demand information regarding the claim. The document helps request the insurance company provide the insured amount in the occurrence the customer is harmed.

The letter of representation is also significant when hiring a Cumis counsel. The letter can also help the insured encourage the insurance provider to start a negotiation as an alternative to additional legal action.

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