Whos responsible above limits when they would have settled for limits?

Location: Iowa

Lady was injured in accident by my son. There is some doubt as to whether it was a pre existing condition, or caused by the accident.

They have asked for his limit of $100,000. Insurance lawyer says if it goes to jury and they award MORE than the $100,000, that he would be responsible.

Is this true? Why should he be responsible when they would have settled? Seems the insurance company would have nothing to lose by fighting it if this was the case.

Thanks for any help...

hdtvincr said:

Location: Iowa

Lady was injured in accident by my son. There is some doubt as to whether it was a pre existing condition, or caused by the accident.

They have asked for his limit of $100,000. Insurance lawyer says if it goes to jury and they award MORE than the $100,000, that he would be responsible.

Is this true? Why should he be responsible when they would have settled? Seems the insurance company would have nothing to lose by fighting it if this was the case.

Thanks for any help...

Click to expand...

My response:

Did the insurance company offer the 100K, and it was rejected?

IAAL

MY insurance did not offer the $100,000.

My insurances lawyer stated that her attorneys demand is for my $100,000 limit. The present state is that my insurance has authorized a counter offer of up to $30,000.

Still, if a jury determines that the damages are higher and the settlement could have been lower, why should I be responsible?

you wont be. the insurance company has a duty to settle within the policy limits if they can. if the carrier takes a chance that a jury will award less than the policy and the carrier is wrong, the carrier ends up paying the award.

have you received a letter from your carrier advising you that the case value may be more than your policy limits?

you should write a letter to your attorney (the one hired by the carrier) demanding that the case be settled within the policy.

stephenk said:

have you received a letter from your carrier advising you that the case value may be more than your policy limits?

you should write a letter to your attorney (the one hired by the carrier) demanding that the case be settled within the policy.

Click to expand...

I have received a letter from my (carrier) attorney stating:

"We remain unconvinced that the Plaintiff's claim is worth $100,000. I have received settlement authority to offer up to $30,000 to settle the claim. I am simultaneously with this letter making an offer of $25,000 to the Plaintiff in settlement. However, I am not optimistic."

"It is possible a jury will not believe the Plaintiff. I simply write to you to advise you of the possibility of a judgement in excess of your insurance limits and your right to obtain your own personal counsel if you wish."


I can also tell you that my (carrier) attorney verbally told me "off the record" that if my big name insurance company chooses to fight it and it goes over, they always take care of it. So I have not bothered with my own "personal" attorney.

who is the carrier?

stephenk said:

who is the carrier?

Click to expand...

State Farm

stephenk said:

have you received a letter from your carrier advising you that the case value may be more than your policy limits?

Click to expand...

I have not received ANYTHING from my carrier, just their hired attorney....