Tuesday, May 25, 2010

Must you be licenced as a lawyer to handle insurance claims?

I am taliking about car damage. Minor injuries.
Answers:
You don't have to be an attorney to handle your own claim, or claims arising under your policy (such as you are the policy owner and you let someone borrow your car). There is also nothing to prevent you from assisting someone else, on their behalf (as their agent), although that can be a really bad idea if the insured doesn't like what you negotiate for them!

However, if the matter goes to court, in order to represent another individual, yes, you must be a licensed attorney.
Nope, not until the need arises for someone to be represented in court, and then an attorney should be involved.
If you're doing it for someone else, yes. If you're doing it for yourself, you don't HAVE to be... But as they say, the man who represents himself has a fool for a client. Remember, if you're suing someone, you CAN ask for attorney's fees!
Actually, I have been doing research on prep for a case involving just this issue lately. And I am dumbfounded with the amount of case law on the subject.

I suggest you read the following to educate yourself. And remember, just because the high court has ruled doesn't mean you will be allowed the fruits of the decision.

Non-lawyers can assist or represent litigants in court.
JOHNSON V. AVERY, 89 S.Ct. 747

Members of group who are competent nonlawyers can assist other members of group achieve the goals of the group in court without being charged with "unauthorized practice of law"

BROTHERHOOD OF RAILWAY TRAINMEN V. VIRGINIA , 377 US 1;
NAACP V. BUTTON, 371 US 415 (1962);
SIERRA CLUB V. NORTON, 92 S.Ct. 1561;
UNITED MINE WORKERS V. GIBBS, 383 US 715;
FARETTA V. CALIFORNIA, 422 US 806.
No. Most states allow people to defend, not prosecute, but defend, when they are not an attorney. But the judge will probally give you a legal compenency test. Its really rare for that to happen though.

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