Adjuster settling with claimant is practicing law
By Gregory P. Turner

An insurance adjuster dealing with an unrepresented claimant was practicing law when she completed release forms, advised the claimants regarding the settlement process, and recommended that the claimants sign a release without advising them of the legal consequences, the Washington Supreme Court has held.

In Jones v. Allstate Ins. Co., no. 70607-7 (May 2002), Allstate’s insured, Jeremy France, ran a stop sign and hit Janet Jones. Ms. Jones sustained severe injuries and incurred more than $75,000 in medical bills. The facts suggested that her seat belt may have failed and contributed to her injuries.

Three days after the accident, Allstate adjuster Christy Klein wrote to Ms. Jones, asserting Allstate’s policy of providing quality service to anyone involved in an accident with an Allstate insured. Over the next two months, Klein called Ms. Jones’s husband almost daily, helping him identify and secure Janet’s medical insurance coverage and obtaining subrogation waivers. Mr. Jones stated that Klein was more helpful to him than his own insurance company.

In December 1997, Mr. Jones met with attorneys to discuss a possible seatbelt product-liability claim. Mr. Jones did not consult with either attorney about settling the claim against France or Allstate’s offer to settle the claim. He later informed Klein that he had met with lawyers to discuss the possible seatbelt claim but had not retained them. Klein told Mr. Jones that she could not represent him if he hired an attorney.

In January 1998, Klein sent Jones a letter, a check, and a release form. Klein offered the $25,000 limit of the bodily injury coverage under France’s policy. The release was headed "release of all claims" and stated that in return for the $25,000, the Joneses released the France family, Allstate, "and any other person, firm or corporation charged or chargeable with responsibility for any and all claims." A note on the release said, "please sign and return to my attention." Ms. Jones signed the release and deposited the check, but Mr. Jones thought that they should not sign it because they might be giving up all of their claims.