A common scenario that is often incorrectly argued concerns a prior payment made by a Responder to either a vendor (repair facility, rental car company, etc.) or to the filing company’s insured for the damages sought by the filing company. For example, the filing company seeks auto repair damages for $4,000 and submits the repair estimate in support. The Responding company has previously issued its own payment to the repair facility for $3,200. How does this need to be argued?

First, if the difference between what was previously paid and what is being sought in the filing is disputed, the Responder needs to enter a dispute into the Auto Damages section. They should explain that they handled the claim directly with the filing company’s insured and attach a copy of the estimate in support. It is also strongly recommended to document the payment date versus the date any prior subrogation demand was received, if applicable.

Second, the Responder needs to claim the prior payment in the Prior Payments Made section and attach proof of payment so credit can be properly applied, if supported.

1.    Dispute the damages sought
 

2.    Enter Prior Payment Made to repair facility
 

3.    Upload and attach evidence