Watch out for Insurance Companies who prey on claimants in the days following the accident.

I was just recently looking at a funding deal; passenger, lumbar fusion, top plaintiff's firm and $1 million coverage and $500,000 respectively on the 2 cars. Looks fine, right? Well almost.
As it turns out the carrier with the $500,000 policy, a fews days post-accident gave the plaintiff $1,500 and had him sign a release. He was not represented by counsel at the time. Yikes!
So while everyone is proceeding in the case...this issue can be brought to the forefront via a summary judgment motion at any time. Of course the plaintiff was unrepresented, didn't know what he was signing and believed it was for medical treatment....but it still"lurks " out there. This practice is sneaky, underhanded and as far as I'm concerned should be outlawed by Insurance Department guidelines or statutory enactment.
How do we curb these tactics? Answer: Prohibit carriers, defendants or third-party TPA's from settling a bodily injury case directly with a claimant for the first 30 days post-accident. What do you think?