What Is an LOP in Legal Terms?
An injury accident can leave you with enormous medical costs. If you did not cause your accident, the at-fault party’s insurer should pay. However, getting the money you need takes time. In many cases, your lawyer will use a Letter of Protection (LOP) to help.
What Is a Letter of Protection in a Legal Case?
A Letter of Protection, or LOP, is an agreement your lawyer writes to the hospital or doctor treating you. The LOP allows you to get treatment by guaranteeing that you’ll pay it from your settlement. In other words, you can get treatment “on credit.”
LOPs are very common in personal injury cases. The letter helps you get the medical care you need without paying out-of-pocket.
Many people do not have the funds to cover huge medical expenses. Plus, you are not responsible for the costs if someone else injured you.
How an LOP Benefits Your Case
If someone else caused your injuries, that person or party is legally responsible. You can seek compensation from them for your damages (Georgia Code Section 51-12-4). Unfortunately, you won’t have access to compensation right away.
You can file a personal injury claim with the at-fault party’s insurance company. Your claim will outline the damages you deserve. But insurance companies like to take their time paying injury claims.
The insurance company will try to delay your case. They know that you are desperate for money to pay your medical bills and other costs. If they “wait you out,” they hope you’ll accept a lower settlement out of urgency.
Don’t Wait for Treatment
Accepting a settlement too soon will leave you without the full compensation you need. But you need treatment right now. A LOP allows you to get the care you need and pay later.
A LOP can also help prove your damages. Your lawyer will use your current expenses to estimate your future and total costs. Knowing these costs will make it easier to put together a settlement demand letter.
If the insurance company sees that you aren’t going to fold early, they’ll be more inclined to negotiate. You might be able to reach a fair settlement faster. That means getting the compensation you need sooner.
How the Letter of Protection Process Works
Your lawyer will send an LOP directly to your medical provider. The letter will agree to pay all of your medical costs when you win your case. You’ll either recover the money through a settlement or a court award.
You can also sometimes use LOPs to put off a bill collection. For example, maybe a hospital treated you right after a car accident. The hospital sent your bill to your health insurance company. But your insurer won’t pay the costs because they say the other driver’s insurer is responsible.
A LOP provides an agreement that you will pay the overdue bill after you win your case.
The Downsides of a Letter of Protection
LOPs can help you get medical treatment sooner, but they also come with risks.
You Pay if You Don’t Win
You’ve agreed to pay your bills when you win your settlement — but what if that doesn’t happen? Legal cases can be unpredictable, and insurance companies are stubborn. If you end up not winning your case, then what?
If you don’t end up winning a settlement or an award, you are legally responsible for your costs. You will have to find a way to pay for your increasing bills. Using a Letter of Protection is risky if there’s any chance you might not win.
The Insurer Might Use It Against You
The other party’s insurer or the defense attorney might try to use your LOP against you. They might claim the doctor who treated you is biased. An LOP can raise questions about the doctor’s motive for providing care and allowing delayed payment.
Remember that insurance companies will look for any way to pay you less. If they can use the letter against you, they’ll find a way to try doing it.
A Risk-Free Option: Medical Funding
Using an LOP is a gamble if you’re unsure about your case outcome. Even if you have a strong case, you still risk getting stuck with the bills if you don’t win. Thankfully, there is another option: medical funding.
With medical funding, a lender pays your medical costs immediately. The lender sends payment directly to your doctor or healthcare provider. You can focus on your case and remove a large stressor.
Like an LOP, you pay back medical funding when you win your case. However, there is one big difference: If you don’t win a settlement, you don’t have to pay back the money.
Applying for Medical Funding After an Injury
At Silver Dollar Financial, we provide medical funding for injury victims. We’ll pay the provider directly. You don’t have to worry about late fees or bill collectors. Plus, you don’t pay us back until you win your case.
We know that legal cases don’t always go as planned. If you don’t win your case, you don’t owe us anything. You only pay back the loan if you win a settlement or an award.
Medical funding is a type of pre-settlement loan. Pre-settlement loans provide funds to cover:
- Medical bills
- Lost wages
- Property damage
- Rent or mortgage payments
- Food costs
Medical funding only covers medical costs. It’s a good option if your medical bills are the largest source of stress after your injury.
We make the application process simple for you. Here’s how it works.
Click Apply Now above to fill out our quick application. We need a few details about you and your case to get started. We do not use your credit score to decide if you qualify.
Our friendly and experienced team is ready to help. We’ll look over your application. If we need more information, we’ll contact you or your attorney.
We Approve and Pay
We’ll let you know whether you qualify for medical funding. Most of the time, you’ll hear in as little as 24 hours. After approval, we’ll pay your medical expenses.
Apply for a Risk-Free Pre-Settlement Loan Today
Getting funding from Silver Dollar Financial is no risk for you. You simply pay us back once you win your settlement. If you don’t win a settlement, you don’t owe anything.
To get started, click Apply Now or call us at (844) 871-0628 today.