If person wants more than ins. coverage???

[klhofbauer]

**Updated** If person wants more than ins. coverage???

What is the name of your state? AZ

History:

Sept 2003: DH was in a very minor rear-ender. Accident happened on ramp merging on the interstate, less than 15 mph according to police report.

Claims Adjuster/CA states that she is calling to let us know that the driver is planning to sue.

CA told me the following on the phone:
NOTE: Medical reports all state "soft tissue damage".

*have been trying to settle with this driver, driver insists they have a back inury.
*drivers attorney wants the 15K from our insurance policy (we told the ins. co. to SETTLE so we do not have to go to trial).
*driver has been to 3 different doctors and/or chiropractors; nothing has been found wrong.
*MRI and xrays show nothing is wrong, driver insists there is.
*driver has amassed over 9,000 in doctor bills.
*CA says that we may receive an intent to sue in mail or via process server and to fax directly to her.
*CA says that if it gets to this point, they get the chance to look at previous medical records, follow the person PI style, interview others, etc - and just from speaking to her, she WANTS this to happen, because she said with all of the medical "evidence" thusfar, this guy just trying to get as much as he can.


COVERAGES:

At the time of this accident coverage:

Bodily Injury: 15K/person
Bodily Injury: 30K/accident
Property Liability: 10K/accident

QUESTIONS:

1. IF the other party is awarded more than the amount of our insurance coverage - WHAT HAPPENS?

---->We have a home, it is on a repayment plan, because we almost lost it due to unemployment. (we've only been in it since July 2002, no equity)
---->Two vehicles, 1991 truck and 1996 car - both paid off.
---->Stipulated judgement against us for Credit Card.
---->Other credit cards maxed out and we are paying. (our credit sucks)
---->Two student loans, approx 18K between us, were in default, just began repaying.
---->We also have 40 acres of land - but believe it or not, it does not appear anywhere on our credit reports. Even when we bought the house, we didn't disclose the payments on it, basically "unless you dig very very deep - you would have no idea we have it." We do NOT want to be forced to sell, as it is for our 4 kids someday.

If this other party puts a lien on our home - WHAT happens here??? Do we have to sell the home?

If he tried to put a judgement against us - and we decided to file bankruptcy, does a judgement get included and then discharged?

 

[BelizeBreeze]

Relax. This is starting to sound like a fraud and your CA is smelling a rat. You should discuss legal representation with your insurance company just to be prepared.

As to your specific question, if the injured (ha!) party is awarded more than your coverage then they will have to return to court to get a judgement lien against you.

But there are remedies. Just don't worry about it yet. That's why you will be getting legal help fromt he insurance company.

 

[klhofbauer]

Relax. This is starting to sound like a fraud and your CA is smelling a rat. You should discuss legal representation with your insurance company just to be prepared.

As to your specific question, if the injured (ha!) party is awarded more than your coverage then they will have to return to court to get a judgement lien against you.

But there are remedies. Just don't worry about it yet. That's why you will be getting legal help fromt he insurance company.

Belize,

Thank you... I know that this is not a hand-holding site (if I want that, I'll go to one of the other groups I belong to), but I can't help being worried and negative wondering... "what's next"?

My husband and I have struggled for so damn long, and finally are getting on track with paying our bills, (in spite of the past dues, things are finally caught up) owning a home - that a kink in the "we can breath easier" if you know what I mean..... just makes me sick.

I know the difference between a soft-tissue damage and REAL damage, as I was hit from behind 10 years ago, after 6 months of therapy, an MRI finally revealed floating bone fragments in my shoulder that ended up being removed. Of course I sued, had to, over 25K in medical bills - and I hate "Karma".

The Litigation Dept. of the Ins. Company called today, and said that she hadn't heard from the other party's attorney, so she was going to call them. She said she wanted to get things in order "just in case" so she could have everything ready for the Ins. Co. Attorney.

She stated that it could "go to trial". That "sometimes" a jury is conservative (obviously sometimes not). That they would get a "medical expert".

I did mention that the other party works for the State of AZ. The Litigator found that rather interesting. (why?, don't know).

It's difficult, as I said, not to be negative.... things happen in 3's.. LOL.. our stove just quit & I need a new element, the water filtration system needs replaced... (all in 1 weekend.. *laugh*).... and #3 is... what.. now this? *sigh*

I just like to *be prepared* for what MAY happen that is why I came on and asked.

Thanks again,

KH

 

[stephenk]

it won't help you for your present accident, but immediately raise your liability coverage to at least $1 million. It does not cost that much more than what you are already paying. you and hubby are seriously underinsured.

Here is the problem with you situation. If by chance the other party really does have a case worth more than $15k, he has no real incentive to settle only for your policy limits. you and your hubby have assets (house, vehicles, property) and the other party could insist that you and hubby contribute towards the settlement.

Bankruptcy will get rid of any such judgment but you will need to sell assets also.

 

[klhofbauer]

it won't help you for your present accident, but immediately raise your liability coverage to at least $1 million. It does not cost that much more than what you are already paying. you and hubby are seriously underinsured.

Here is the problem with you situation. If by chance the other party really does have a case worth more than $15k, he has no real incentive to settle only for your policy limits. you and your hubby have assets (house, vehicles, property) and the other party could insist that you and hubby contribute towards the settlement.

Bankruptcy will get rid of any such judgment but you will need to sell assets also.

Thank you for the reply.

Actually.. we do have much better coverage now. The accident happened on our old policy.

We couldn't change companies for awhile. On the same day my husband bought his truck 4 years ago, driving to the Insurance Agency, the rear tire blew, he side-swiped someone before he could get into the median - so until that accident came off, we couldn't FIND anyone we could switch to.

 

[klhofbauer]

Okay,

So, now we know, this guy is going to sue. The process server just called, and had the incorrect address. He'll be dropping off the paperwork from the Superior court tomorrow morning.

He said that "it looks like it must be from an auto accident" and "just give these to your Insurance Company"... which I'll be doing of course.


NOW WHAT?

I'm ready to figure out how to deed our land/40 acres - 10 acres to each of our kids. Then, file bankruptcy.

 

[stephenk]

once you get served immediately deliver it to your insurance company's nearest claim office. if the injuries are as you described them, you shouldn't worry about the claim being worth anything near your policy limit or even going over the limit.

once you are informed of the name of your attorney by your insurance company, call the attorney and discuss your fears. I tell my clients to call me with their worries about the case because I'm the one that is paid to worry for them.

 

[klhofbauer]

once you get served immediately deliver it to your insurance company's nearest claim office. if the injuries are as you described them, you shouldn't worry about the claim being worth anything near your policy limit or even going over the limit.

once you are informed of the name of your attorney by your insurance company, call the attorney and discuss your fears. I tell my clients to call me with their worries about the case because I'm the one that is paid to worry for them.

Thanks Stephen,

Believe you me, I do intend on being on the phone with the Ins. Attorney until I get the feedback.

As far as the "injuries" - I was transcribing exactly what the original Claims Adjuster was reading to me from her submissions when she first called a few months ago. (by original - the claim is now with the Ins. Litigation Dept., and I spoke to a litigator on Monday)

My husband told me that the guy insisted on a towtruck:

Other guy: "I'm not hurt, but my car won't start so I need a towtruck"
Cop: "Here, I'll show you how to start it" - then started the car.
Other guy: "Well, I still want a towtruck".
(had something to do with a sensor that needed adjusted after the accident)

The red lens caps on the rear lights were broken - NOT the bulbs, the lights still worked. The trunk was dented in.

The Litigator told me that "we totalled his car, because of how old it was and it would have cost more to fix than the value". (and we all know how expensive body work is - that's a given basically anywhere)


I also understand that there was a 3rd car. The 3rd car jumped in front, the second car skidded, husband couldn't stop in time. Third car drove blissfully away unaware. I do understand, it doesn't matter, it's your fault if you rear-end someone. My husband says he can't recall any details... I told him he needs to sit his ass down and write everything out. EVERY detail. Speed, traffic flow, every second....

One more question:

What is this "3x's the damages" reference?

KH

 

[BelizeBreeze]

I also understand that there was a 3rd car. The 3rd car jumped in front, the second car skidded, husband couldn't stop in time. Third car drove blissfully away unaware. I do understand, it doesn't matter, it's your fault if you rear-end someone. My husband says he can't recall any details... I told him he needs to sit his ass down and write everything out. EVERY detail. Speed, traffic flow, every second....

Can you say "Stop and swoop"? Tell hubby as soon as he's completed this statement to send it to the insurance company. They will do a background check on the other driver. Want to bet this driver has had more than one 'accident'?

 

[Arlee]

soft-tissue claims

This isn't any advice, just a comment on a similar situation. Hope you don't mind.

In my case, I was on a highway off-ramp, waiting to ease onto a two-lane road. Rush-hour traffic was slow and we all had to inch forward and then stop as the lights up ahead changed from green to red, back and forth. As I was finally crossing the two-lane to take up my position on the smaller road, the light further up changed to red and traffic jerked to a stop again. I wasn't sharp enough to notice in time.

I slipped up on the guy ahead of me and tapped his bumper at no more than 5 mph. I kid you not. No damage to my car, no damage to his EXCEPT -- and here's where I cringe in sympathy for him -- a scratch right across the bird logo on the bumper of his brand-new, custom-painted, red Trans-Am. And he was, just to further prove my luck, an off-duty cop. At least he was really nice about it and obviously no one was hurt.

Well, it was of course my fault and I could totally understand his being p.o.'d; I was surprised at how well he kept his cool. I knew I'd be paying for a new, custom, paint job and likely a new bumper.

Imagine my surprise when I got notice my insurance company had paid him TEN THOUSAND DOLLARS (and this was in 1989 dollars, no telling what it would have been now). I never even got a chance to argue, just got notice of the payment. I learned later from associates that, as a policeman, the driver knew enouth about accidents to drive directly to the hospital and tell them he had soft-tissue damage from a wreck. It seems "soft-tissue damage" cannot be readily proven nor disproven and is the magic phrase for a big insurance payment (at least that's what I'm told).

It sounds to me that you were royally screwed. The I hope that all turns out well for you, despite the machinations of the other party. I sincerely hope you can prove fraud on their part; that oft-used phrase certainly caught my attention. Let us know what happens.

Arlee

 

[LdiJ]

Can you say "Stop and swoop"? Tell hubby as soon as he's completed this statement to send it to the insurance company. They will do a background check on the other driver. Want to bet this driver has had more than one 'accident'?

I thought the EXACT same thing when she mentioned the third car.

 

[stephenk]

"3x meds" is an outdated formula for determining the value of a soft tissue injury claim. It was popular back in the 80s. it would be that a case is worth the medical bill multiplied by 3. Therefore, the attorney would get their one third, the doctor would get paid and the client would get the remaining one third amount.

Now case valuation is based on the reasonable value of the medical billing (not the actual billing) and maybe a few thousand in general damages (pain and suffering). loss of earnings is the actual amount. Remember, this is for a soft tissue injury case.

Severe injuries are valued somewhat the same but general damages are typically much more and future medical treatment is included.

your attorney will explain it in more detail.

 

[klhofbauer]

Hello,

Just wanted to send in an update.... I've seen others do it, and think it is a good idea... LOL

Talked to the Attorney for our Insurance company. Apparently, this guy had 41 Chiropractic visits, totally 9,870.00. The NORMAL cost for this many visits, per our attorney looking at 8 other cases he had with 40-45 Chiro visits is approximately 4,000 - 4,500.

So, our insurance company is not fighting the accident per se, but the cost of the visits since they are double the normal cost around here.

The attorney also said that if by chance this guy would be awarded above the amount of our policy it is natural to appeal immediately. He also said that if by chance this other guy's attorney would pull our credit, he'd find out that we really don't have much of anything, and most likely would settle.. LOL (one good thing I s'pose about having lousy credit!?).

To me, this guy is completely 100% STUPID. Why on EARTH would you keep going to the doctor? The policy is 15K. His medical bills are 9,875. That leaves a difference of 5,125, of which his attorney will get probably 1/2 of that amount. Is this guy for real? Oh, yeah, he works for the state....! It would seem to me that you take a lot less Chiro visits, sue for the policy amount!

Particularly when the police report mentions that a third car swerved into my husband's truck, when only moments before the guy that got hit cut off my husband and pulled in front of him so when my husband looked to his left to avoid the 3rd swerving car, the guy in front came to a stop.

So.. that is the update so far.

What's really annoying is that this could drag on for well over a year... *sigh*

KH