If there is any area where there is perfect application of technology based legal process outsourcing (LPO), then that could be Insurance Litigation. Individuals and organizations purchase insurance policies from different insurance company to protect themselves from any kind of financial loss. The policy holders expect a sense of good faith and trust from these insurance companies and invest ample of money in the form of premium paid on monthly or yearly basis. The policy holders believe that these insurance companies will meet their required obligations when the insured files claim. Insurer that fails to follow on with their obligations may find themselves embroiled in Insurance Litigation. Policy holders, third party or beneficiaries may then file a court suit seeking damages whenever they find that the insurers are involved in unreasonable or unfair practices with regard to insurance coverage and claims. State statutes deal with any of such insurance handling claims and are responsible for the regulation of the claim handling procedure of the insurance companies.