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 Posted: Mon Jun 01, 2009 4:58 pm Post subject: Underinsured Insurace/Country Companies |
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| I was in a accident last year, other person at fault...I have over 100,000 of medical bills...if the other person has coverage at 100/300 and my underinsured has the same coverage. Does that mean my insurance does not have to cover any "overage of medical bills". Do you think the insurance company will come back and over the policy limits of 100,000. My insurance in state farm and her coverage is with country companies. |
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pcr349
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| Posted: Mon Jun 01, 2009 6:17 pm Post subject: |
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If the other person's carrier offers up their $100k policy limits you can them make an Under Insured Motorist Bodily Injury (UIMBI) claim. There are usually two parts to the UM coverage, Uninsured and Underinsured. Your carrier should then determine the amount of your claim (this is negotiated of course) and pay the difference between that amount and what the other carrier paid.
You need to make sure your carrier knows about the other carriers offer _before_ you accept the other carriers offer.
If you have $100k in medical bills and UIMBI coverage, you may want to consider hiring an attorney who would handle just the UIMBI claim (that is, only take 33% of the UIMBI settlement)... this is up to you of course. |
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tcope
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| Posted: Tue Jun 02, 2009 7:03 am Post subject: |
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Tcope, can one qualify for the UIM coverage even if the other carrier settles below the policy limit?
It may so happen that the other insurer sticks to its proposal of settling lower than the policy limit when the medical bills are higher than it. Would the claimant then receive the remaining amount from his insurer? |
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kelvin
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| Posted: Tue Jun 02, 2009 7:11 am Post subject: |
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Hi pcr349,
Do you have reasons to believe that the other person's carrier would offer up to their policy limits?
Otherwise, don't worry and inform your carrier regarding the other carrier's offer. Now, leave it to your carrier to settle for the difference between the negotiated worth of your claim and what the other carrier needs to pay.
Steven |
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steven
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| Posted: Wed Jun 03, 2009 11:04 am Post subject: |
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| Quote: | | Tcope, can one qualify for the UIM coverage even if the other carrier settles below the policy limit? |
NO, not ever, because then they would'nt be 'under' insured if the claim settled under the limit... | Quote: | | Do you have reasons to believe that the other person's carrier would offer up to their policy limits |
Steven, he said | Quote: | | I have over 100,000 of medical bills |
| Quote: | | Would the claimant then receive the remaining amount from his insurer? |
NO, he cannot present a UIM claim unless the other carrier pays policy limits...he also cannot accept this offer without talking to his carrier FIRST as he could jeopardize his UIM claim.
_________________
"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Wed Jun 03, 2009 3:38 pm Post subject: |
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| Quote: | | NO, he cannot present a UIM claim unless the other carrier pays policy limits...he also cannot accept this offer without talking to his carrier FIRST as he could jeopardize his UIM claim. |
Very true. There is a portion of the UIMBI coverage that states that the insured cannot accept the BI payment unless allowed by his/her carrier. This is because the UIMBI carrier has a right of recovery against th at fault party for anything they pay out (under UIMBI). But of course the BI carrier won't pay anything unless a release is signed (payment is accepted). Usually the UIMBI carrier has a limited time to either waive their right of recovery or pay the BI carriers limits. The UIMBI carrier runs a assets check, see's that there is nothing to be had and then waives their right of recovery.
The important part is, as Lori mentioned, to notify the UIMBI carrier of the settlement offer before it's accepted (or at least present a UIMBI claim asap... which is now since this is obviously a UIMBI situation). |
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tcope
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