<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by sccookie:
2 years ago,I was in the right lane. In the left lane, a full-size a school bus was stopped for a left turn onto a private road.
A car from the opposite direction turned left
in front of the school bus and in front of me. I T-boned him. He was ticketed.
I settled with my insurance company but the ticketed driver of the other car has sub-standard insurance.
My insurance company has told me it is MANDATORY I appear at arbritration hearings and at the court if necessary so they can attempt to recover their $5500 from the sub-standard insurance company. They have aggressively pursued me.
What are my rights? Am I obligated to participate? They say I must cooperate. Who determines conditions for "cooperate". When will it end?
Your insurance company is correct. I think you better read your policy of insurance (which, by the by, is a contract). In that document, both you and the insurance company have agreed to certain terms and conditions; one of which is your "cooperation" to assist them to recoup their money. In exchange for that promise, they have afforded you coverage and payment for your vehicle repair.
If you fail to cooperate until a mediator, arbitrator and / or judge has made a final decision, and that decision is accepted by all parties, you have a continuing duty, by contract, to "cooperate."
If you fail to cooperate, as reasonably requested by your insurance company, they may "drop" you for having Breached the contract, and it could make things really difficult for your in finding a new insurance company in the future. Remember, they are all tied together by computer, and can see who's made claims, and the outcome (e.g., who's been naughty and nice).
Insured must continue to cooperate with insurer: But the insured must continue to fulfill its obligations to the insurer under the "cooperation" clause; i.e., to appear as a defendant and to testify to the truth. [Critz v. Farmers Ins. Group, supra, 230 Cal.App.2d at 801-802, 41 Cal.Rptr. at 408]
Liability insurance policies invariably require the insured to cooperate with the insurer in investigation and defense of third party lawsuits. [See New Hampshire Ins. Co. v. Ridout Roofing Co. (1998) 68 Cal.App.4th 495, 80 Cal.Rptr.2d 286, 288 (citing text)]
a. Sample provision: The current CGL form provides:
-- "You and any other involved insured must . . . Cooperate with us in the investigation, settlement or defense of the claim or 'suit'." [CG 00 01 10 93, CG 00 01 01 96]
A more elaborate version states:
-- "The Insured shall cooperate with the Company and, upon the Company's request, shall attend hearings and trials and shall assist in effecting settlement, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits, and the Company shall reimburse the Insured for any expense, other than loss of earnings, incurred at the Company's request." [See Rockwell Int'l Corp. v. Sup.Ct. (Aetna Cas. & Sur. Co.) (1994) 26 Cal.App.4th 1255, 1262, 32 Cal.Rptr.2d 153, 155]
b. The purpose of such clauses is to permit the insurer to present a complete defense of its insured in the underlying action and to enforce indemnity against others. [Rockwell Int'l Corp. v. Sup.Ct. (Aetna Cas. & Sur. Co.), supra, 26 Cal.App.4th at 1262, 32 Cal.Rptr.2d at 155]
As part of its right under the cooperation clause, an insurer can require its insured to submit to an examination under oath under appropriate circumstances. [Globe Indem. Co. v. Sup.Ct. (Guarnieri) (1992) 6 Cal.App.4th 725, 731, 8 Cal.Rptr.2d 251, 255--first party case]
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[This message has been edited by I AM ALWAYS LIABLE (edited June 16, 2000).]