Settlement, General Release and Uninsured Motorist Insurance

[LysanderSpooner]

What is the name of your state (only U.S. law)? FL

When an insurance company agrees to a policy limit demand and the other driver signs a general release is there any liability by the at fault driver to the other parties UIM carrier?

In other words, if the not at fault injured driver makes a claim against his UIM policy can the UIM come after the at fault driver even though the injured driver signed a general release?What is the name of your state (only U.S. law)?

 

[ecmst12]

Not if a release was signed, no.

 

[justalayman]

why would injured party sign a release and who were they releasing?

If the injured party signed a release provided by their own insurance company, I might suggest it was to release that insurance company from any further claims by their client. Most generally the insurance company has the right to subrogate a claim against the at fault party when making payment to their own client.

I can see no reason any persons own insurance company would attempt to limit their clients ability to sue an at fault driver. It doesn't make sense.

 

[ecmst12]

The at fault driver's insurance company would require a release before paying out the property limits. The only way to avoid signing the release would be to go to court BEFORE receiving any payment from either insurance company and receive a judgement in excess of the policy limits. Generally unless the underinsured party has considerable assets to collect from, the not-at-fault insurance company is not going to dispute the signing of a release to avoid a costly and pointless court battle.

 

[LysanderSpooner]

Just to be clear, the at fault driver's personal liability limit (not property limit) is in question. The general release is from the injured party for at fault party's the policy limit. The injured driver has a claim against his own underinsured motorist insurance for medicals.

How could the injured party's insurance company seek subrogation when their client has signed a general release in order to get the at fault party's policy limit?

 

[ecmst12]

Did you read my previous answer? They can't.

 

[LysanderSpooner]

Florida Statutes 627.727

ecmst12

I did and after talking to my claims adjuster I also did some research in the FL Statutes.

"It is very rare that a UIM carrier does not waive subrogation and allow settlement. If they do not waive subrogation, the carrier would have to front the $XXX,000. The carrier would then settle the underinsured claim, then come back to you looking for the amount paid over the $XXX,000.

Most carriers do not want to put that amount of money up front and then wait for a very long time to collect back."

Florida Statutes 627.727 Motor vehicle insurance; uninsured and underinsured vehicle coverage; insolvent insurer protection.
(6)(b)

If an underinsured motorist insurer chooses to preserve its subrogation rights by refusing permission to settle, the underinsured motorist insurer must, within 30 days after receipt of the notice of the proposed settlement, pay to the injured party the amount of the written offer from the underinsured motorist's liability insurer. Thereafter, upon final resolution of the underinsured motorist claim, the underinsured motorist insurer is entitled to seek subrogation against the underinsured motorist and the liability insurer for the amounts paid to the injured party.

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Thanks to all who offered information. I now have a better idea about this area of insurance law. There is so much to learn!