Does the law limit the liability of a court settlement to an individual for home and auto insurable instances?

Question

in the case of a life? What is the maximum amount the law holds a person for for the negligent taking of life in an insurable situation?

Answer 1

The law does NOT put a limit on it. There is no price set for what a life is worth, in the US.

There is a PRACTICAL limit, of how much you can collect, either from the other person's insurance company, or from their assets. But not a LEGAL limit.

Punitive damages are NOT covered by insurance, btw. Or rather, I've never seen a personal lines policy to cover punitive damages.

Answer 2

In theory there is no limit on personal injury damages. However, a court can throw out a jury's verdict if it thinks the damages awarded are excessive.

Professionals in the personal injury field do have ways of valuing losses. Loss of life is based on the loss of earnings, including future earnings potential, if the decedent supported a family. A non-employed spouse's loss of life would be based on the amount of money it would take to hire a cook, housekeeper and baby sitter. If the decedent did not die instantaneously, pain and suffering would be factored in.

Practically, in non-intentional personal injury suits, damages are limited by insurance coverage. One of the reasons for this is that personal injury awards can be discharged in bankruptcy.

However injuries due to intentional acts, including drunk driving are not dischargeable.

Answer 3

Some states do limit the amount payable for wrongful death. Maine is one of them (Maine Wrongful Death Statute). New Hampshire has a small blurb in the Titile LVI (PROBATE COURTS AND DECEDENTS' ESTATES). Wisconsin also has a wrongful death statute (Wisconsin Statute §895.04). Every state has some sort of wrongful death statute (Google: wrongful death statute {name of state}), which while they may not set a limit as to damages, they would certainly set time limits and limit who may commence a wrongful death action.