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The importance of zip codes in processing insurance claims is highlighted as they help match demographics for jury awards, based on the location of the accident. In Southern California, there are differences in jury awards between locations like San Diego and Beverly Hills, with the latter seeing higher awards. Jurisdiction plays a role in determining the perceived value of a claim, and insurance companies use zip code information to predict potential litigation locations. Zip codes are crucial in the software used for review, as they indicate where a lawsuit would be filed if necessary.