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naylahknee

Insurnace company refuses to pay out policy limit

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I was rear ended 2/14/2018.  Had physical therapy, missed work and  continue to have ongoing back problems.  Insurance company refuses to pay the policy limit of 15k and only offered 10k.  I dont have the money to hire a lawyer, Ive negotiated on my own but we are now at an impasse.  Should I sue the at fault driver or try to sue the insurance company for bad faith? I just want this over with but my medical bills are over 32k.

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There is no bad faith on third party liability claims. The other driver's insurance company owes you nothing until a court of law says so and says how much.

 

You sue the driver if you want to sue.

 

You don't need money to hire a personal injury attorney. They work on contingency. They get paid if they get you a settlement or an award.

 

However, they typically get 1/3 so if an attorney won the $15K limits, you'd get $10K anyway.

 

If the attorney got a judgment for more than $15K, collecting against someone with minimum limits would be problematic.

 

Have you looked to your Underinsured Motorists Coverage?

 

What state are you located it?

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21 minutes ago, adjusterjack said:

However, they typically get 1/3 so if an attorney won the $15K limits, you'd get $10K anyway. 

And there would be costs added on top of the 1/3, so the OP would actually get less than $10K. 

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50 minutes ago, naylahknee said:

I was rear ended 2/14/2018.  Had physical therapy, missed work and  continue to have ongoing back problems.  Insurance company refuses to pay the policy limit of 15k and only offered 10k

 

I assume you're talking about the other driver's liability insurance carrier.  Correct?

 

 

51 minutes ago, naylahknee said:

Should I sue the at fault driver

 

If you can't get the other driver's insurer to put more money on the table and aren't willing to accept what's being offered, then this is your only option.

 

 

51 minutes ago, naylahknee said:

or try to sue the insurance company for bad faith?

 

Depending on the laws of your unidentified state, it is unlikely that a bad faith cause of action by a third-party claimant such as yourself is recognized as valid.  Even if you could do this, I seriously doubt you have the ability to self-litigate against an insurance company that will be represented by legal counsel.

 

 

53 minutes ago, naylahknee said:

I just want this over with

 

Then take the $10k.

 

 

53 minutes ago, naylahknee said:

but my medical bills are over 32k.

 

Then there's got to be some reason why the insurer isn't offering the $15k policy limits.  It's not just doing it for s***s and giggles.

 

If I were you, I'd consult with a few local PI attorneys and see if they think they can be of any value to you.  As noted above, while a lawyer charging a 1/3 contingent fee would be of no value to you, it's possible you can find one willing to accept less than that for a limited scope of work.

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im in the state of california.  Both the at fault driver and I have the same policy limits which means I cant use underinsured motorist coverage (state of california).

1 hour ago, adjusterjack said:

There is no bad faith on third party liability claims. The other driver's insurance company owes you nothing until a court of law says so and says how much.

 

You sue the driver if you want to sue.

 

You don't need money to hire a personal injury attorney. They work on contingency. They get paid if they get you a settlement or an award.

 

However, they typically get 1/3 so if an attorney won the $15K limits, you'd get $10K anyway.

 

If the attorney got a judgment for more than $15K, collecting against someone with minimum limits would be problematic.

 

Have you looked to your Underinsured Motorists Coverage?

 

What state are you located it?

Bbn

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There isnt any other reason except that they know if I hire a lawyer, I will only get 10k anyway.  I could sue the insurance company for bad faith as they are unwilling to pay the policy limit out but that takes even longer....they wont even give me a reason why they sre only offerring 10k.

1 hour ago, pg1067 said:

Then there's got to be some reason why the insurer isn't offering the $15k policy limits.  It's not just doing it for s***s and giggles.

 

If I were you, I'd consult with a few local PI attorneys and see if they think they can be of any value to you.  As noted above, while a lawyer charging a 1/3 contingent fee would be of no value to you, it's possible you can find one willing to accept less than that for a limited scope of work.

 

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13 hours ago, naylahknee said:

I could sue the insurance company for bad faith

 

You could (anyone can sue anyone for anything), but you'll quickly lose and be required to pay the insurance company's court costs.  California does not recognize a cause of action for bad-faith against an insurer arising out of a third-party claim.  Your recourse is to do what I previously suggested or sue the other driver.  You can also submit a complaint to the California Department of Insurance.

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13 hours ago, naylahknee said:

I could sue the insurance company for bad faith

 

13 minutes ago, pg1067 said:

California does not recognize a cause of action for bad-faith against an insurer arising out of a third-party claim. 

 

Yes, actually, in California you can do that under the Unfair Claims Practices statute 790.03(h)

 

http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=INS&division=1.&title=&part=2.&chapter=1.&article=6.5.

 

PG1067, see:

 

https://corporate.findlaw.com/corporate-governance/third-party-bad-faith-actions-return-to-california.html

 

and:

 

https://www.justia.com/trials-litigation/docs/caci/2300/2334/

 

But to succeed in a bad faith lawsuit you would have to show that what they are doing is "a general business practice." In other words, not just something they are doing to you. Bad faith lawsuits are very complex. You might seek an attorney with specific experience in successfully suing insurance companies for bad faith.

 

Or, as PG1067 suggests, file a complaint with the Department of Insurance citing the violations of the statute. At least, then, you may get a reason for the insurance company low balling you.

 

 

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We know very little about your case except that you were rear ended and claim 32k in medical bills.  There must be some problem with the case if the insurer is not throwing in its policy limits.  Not doing so exposes their insured to a possible huge excess verdict.  What explanation did the adjuster give you for disregarding the medical expense?

 

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1 hour ago, adjusterjack said:

 

I'm going to throw your own words back at you:  read the actual law, not just an article about the law.  While it does, indeed, seem that this law was passed in 1999, I can find no evidence that it still exists.  There is no Title 13.7 of Part 4 of Division 3 of the Civil Code or a section 2870 or 2871.  Nor is there a Title 11.65 in Part 3 of the Code of Civil Procedure or sections 1776-1784.  Also, the reference in the article to the Vandeberg case makes no sense since that case had nothing to do with this issue.

 

Nor could I find a case that cited to this legislation.

 

If you can find some actual law, I'll take a look.

 

 

1 hour ago, adjusterjack said:

 

That jury instruction "is for use in an 'excess judgment' case; that is one in which judgment was against the insured for an amount over the policy limits, after the insurer rejected a settlement demand within policy limits."  It has nothing to do with third-party bad-faith actions.

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3 hours ago, RetiredinVA said:

We know very little about your case except that you were rear ended and claim 32k in medical bills.  There must be some problem with the case if the insurer is not throwing in its policy limits.  Not doing so exposes their insured to a possible huge excess verdict.  What explanation did the adjuster give you for disregarding the medical expense?

 

Well if i knew why they refuse to pay out the policy limit, I wouldnt have asked my initial question.  It's an insurance company, since when do they EVER pay what they are supposed to pay?

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7 hours ago, naylahknee said:

I have submitted a complaint to the department of insurance.  Nothing happened. Never got a response.

 

What date did you send it? It could take a couple of months until you get a response.

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2 hours ago, naylahknee said:

Well if i knew why they refuse to pay out the policy limit, I wouldnt have asked my initial question.  It's an insurance company, since when do they EVER pay what they are supposed to pay?

If your case involves uncontested liability and reasonably appropriate and necessary medical cost of over twice the policy limits. and documented long term pain and suffering there are few adjusters who would not throw in the limits

  This is especially true where the limits  are as low as $15,000.  I suspect your case has a problem somewhere

 

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17 minutes ago, RetiredinVA said:

If your case involves uncontested liability and reasonably appropriate and necessary medical cost of over twice the policy limits. and documented long term pain and suffering there are few adjusters who would not throw in the limits

  This is especially true where the limits  are as low as $15,000.  I suspect your case has a problem somewhere

 

 

Ditto.

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1 hour ago, adjusterjack said:

What date did you send it? It could take a couple of months until you get a response.

The most recent one in that screenshot was filed, never got a response from Infinity or the Department of Insurance on all 3 cases...

Screenshot_20190716-182019_Chrome.jpg

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