PROCEDURES

Step

Action

Engagement

LCC is contacted by law firm or insurance adjusters

Obtain Documents

LCC obtains: Joint Cost Sharing Agreement

 

Participant List including Claim number, adjuster contact

 

All existing invoices and payments

LCC Processes

1. The case is set up in C.L.A.I.M.S. software

 

2. All vendors are set up including contact, address, fax & email and EIN

 

3. All invoices are input and scanned into C.L.A.I.M.S.

 

4. All direct payments are input and scanned into C.L.A.I.M.S.

 

5. LCC contacts every vendor to verify that all invoices have been received and all payments have been accounted for

 

6. LCC verifies the sharing arrangement, tiers, joint sharing of single shares based on common insureds, and any other factors that affect the JDA sharing

 

7. LCC sets up a new bank account for the matter

 

8. LCC sends a preliminary report to be approved for sending to all payers

 

9. LCC obatins permission to bill all payers

LCC sends reports

10. LCC sends each payer reports indicating the amount paid and/or owing. This is normally sent by email with attachments including all underlying vendor invoices

Ongoing services

11. LCC continues to monitor vendor invoices, including verifying that invoices that were directly paid by the defending law firm are not “double billed”

 

12. At least twice a month, LCC pays from the individual client account, outstanding vendor balances to the extent of funds available

 

13. LCC continues to input and scan every new invoice and any direct payments to vendors

 

14. In most cases, every invoice is verified and approved by the law firm prior to LCC adding it to the matter

 

15. Monthly, reports are sent for review by the law firm and then each payer is sent a report indicating the current amount owing with attachments for every new invoice

 

16. LCC deposits payments from payers and pays vendors

 

17. As information is obtained, SIRs, tender dates, settlement dates and other sharing information is revised or edited.

 

18 Based on 17, C.L.A.I.M.S. constantly recalculates each payer’s amount owing.

Safeguards and issues

Vendor invoices are provided to payers only with prior approval.

 

There are three separate options:
1. the payer does not receive invoices,
2. the payer only receives the cover page, or
3. the payer receives the entire invoice.
This all is based on coverage/legal issues that is determined and approved by the defending law firms in conjunction with the payers

 

Payments are made by check. The bank will only pay the amount that is separately transmitted to the bank. This avoids check modifications

 

The bank account is reconciled every month to verify current balances.

 

Each bank account is insured by the FDIC. The regulations may change from time to time, but as of March 1, 2011 the FDIC is insuring unlimited balances for the accounts

 

LCC emails or telephones any payer if payment isn’t received within the normal payment period