Insurance company is negociating with the person that was injured. The policy holder is under insured. The case is two years old.
2007-11-20 00:25:32 · 5 answers · asked by um 2 in Cars & Transportation ➔ Insurance & Registration
Whatever the judge says. The policy only pays out to the policy limit - if the judgement is more, the person being sued pays the rest themselves.
2007-11-20 01:17:55 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
If the injured party settles for the at fault driver's limits - the insurance company will have the injured person sign a release that ends the claim against the at fault owner/driver. In my state - we have the injured person sign a Covenant Not To Execute. It allows the injured person to sue the at fault driver in name only - that's how they sue an insurance company in an under insured motorist claim.
Unless the at fault driver has assets, the injured person will usually settle for the policy limits and then pursue their own policy for Under-Insured Motorist coverage (if they have it - it's not a required coverage in most places).
If a law suit is filed -it gets filed against the at fault owner/driver- not the insurance company. The person being sued will usually receive the papers via certified mail or process server. If you get suit papers - call your insurance company immediately!!!! They will hire an attorney to defend you (per your policy language) but they have a limited time to get the attorney hired and the answer on file. The clock starts running as soon as you get sued. If you do not get an answer on file - it can result in a default judgment against you - that's an automatic you lose.
If you are the at fault driver - it's OK to call the adjuster and just check in and see how it is going. The negotiation process can take some time - so calling every day or every week is a bit much - but calling once a month or so is OK. If the adjuster thinks a law suit is likely to happen - they usually send you a letter letting you know.
**not to be taken as legal advice **
2007-11-20 09:25:53 · answer #2 · answered by Boots 7 · 1⤊ 0⤋
Masad's answer is spot on. I will add one thing....
While its not typical that an attorney files suit... it does happen. It usually happens either to protect the Statute of Limitations (attorney and insurance company are still negogiating and the SOL time is coming close) or the attorney feels the last offer by the carrier is _way_ to low. Suits are almost _never_ filed if the carrier is offering their policy limits (unless you have a million dollars in the bank, the attorney would just accept the offer of the policy limits). The attorney files suit to show the carrier that he/she is serious about wanting more money. Most states require mediation to take place before trial and cases usually settle in mediation. Once a suit is filed, the carrier gives all the information to defense counsel (representing you) and the defense bill starts climbing. As such, the insurance company is usually more "interesting" in settling and the plaintiff attorney knows the carrier will usually offer more money.
2007-11-20 10:26:29 · answer #3 · answered by Todd C 4 · 0⤊ 0⤋
They usually settle for what the insurance has.... If no-one was seriously injured , let the ins.co. handle it. After 2 years they (the compliants) can't be too seriou.... But just my thought...Good luck
2007-11-20 08:58:55 · answer #4 · answered by pack23wolfden 3 · 0⤊ 0⤋
IF THE SETTLEMENT IS LARGER THAN WHAT YOU ARE COVERED FOR THE REMAINING DIFFERENCE WILL BE YOUR RESPONSIBILITY.
THEY WILL SUE YOU FOR THE DIFFERENCE AND PUT A LIEN ON ALL OF YOUR PERSONAL PROPERTY.
2007-11-20 08:41:40 · answer #5 · answered by Anonymous · 0⤊ 0⤋