Most people are aware that if they are involved in an automobile accident with another vehicle they can bring a lawsuit against the driver and owner of the other vehicle for monetary damages. But what if the other vehicle has minimal insurance coverage that is inadequate to compensate you for your injuries? Or worse, what if the other vehicle had no insurance at all? Under these circumstances, you may be able to look to your own automobile insurance policy for coverage.
Missouri law requires that all automobile insurance policies include uninsured motorist coverage. This covers you when the driver of a vehicle has no insurance. It may also cover you if you reside in a household with someone who owns an insured automobile. By law, every automobile insurance policy issued in Missouri must have a provision for uninsured motorist benefits of at least twenty-five thousand dollars ($25,000) per person and fifty thousand dollars ($50,000) per accident for two or more people. You may increase the limits of your uninsured benefits to match the policy limits of your overall general liability coverage. For example, if you have automobile liability coverage of $100,000 per person, $300,000 per accident you may obtain uninsured motorist benefits to match that amount.
An optional coverage in Missouri is Underinsured Motorist coverage which helps if you are involved in an automobile accident (whether you are a driver, passenger or pedestrian) with a motor vehicle that does not have adequate insurance. Under this coverage you may still be able to recover money from your own automobile insurance company for your injury. Whether or not you can bring a claim against your own policy and for how much depends on the limits of your underinsured motorist coverage and the specific facts of your situation. Underinsured motorist coverage is important to purchase because it allows you to recover money from your own automobile insurance coverage if the offending vehicle had inadequate insurance coverage.
It is a good practice that your uninsured and underinsured motorist insurance limits match your liability limits.
If you need assistance with your uninsured or underinsured injury case contact Chris Faiella, or one of the attorneys at his firm for your free initial consultation at 1-800-264-3455.
Insurance companies must follow specific requirements when they cancel a policy of insurance. If the company fails to follow these requirements then the policy is not canceled. One rule that applies in almost all cases is that the notice must not anticipate the failure to pay a premium. In other words the company cannot comply with State Law notice requirements by simply telling an insured in the policy that if you don't pay the policy lapses, a notice must be sent. However, insurance companies sometimes send notification to a wrong address, to the wrong person or not at all.
Is the insurance company of someone who injured you telling you there is no coverage because the policy lapsed or was cancelled? Are you are being told by your insurance company that your coverage lapsed or was cancelled? If you did not receive notice it is possible that the insurance company did not follow all of the rules when they "cancelled" the insurance. Chris Faiella, a partner with the law firm of Tatlow, Gump & Faiella, LLC has helped clients fight insurance companies after they have been told a policy of a person who injured them was canceled and in cases where their own insurance company claimed a policy lapsed. Our firm has been successful in securing recoveries for clients in these situations. If there was not proper notification of the cancellation of a policy by the insurance company then you may have a claim even if the company claims there is no insurance coverage.
Speak with an Attorney
Call toll free 1-800-264-3455 to speak with a Chris Faiella of the Law firm of Tatlow, Gump & Faiella, LLC about your Insurance Coverage claim when the Insurance Company did not provide proper notification of cancelation or lapse.
If you don’t want to arbitrate don’t simply accept what your insurance company tells you about your rights. For instance, James Smith applied for benefits under a policy of insurance he was entitled to receive. The policy said that any dispute will go to arbitration. It also said that arbitration was binding and let the insurance company pick the arbitrator. An arbitrator is like a judge and is the person who will decide whether or not the claim is valid.
In Mr. Smith’s case the insurance company disputed the claims and when Mr. Smith filed suit to pursue his claim in state court the insurance company filed a federal lawsuit under a law called the Federal Arbitration Act trying to force Mr. Smith into arbitration in front of their handpicked arbitrator. Mr. Smith lived in a state which had an anti-arbitration provision in their state law. Under the United States Constitution, supremacy clause, federal law is superior to and supersedes state laws which conflict with federal law. However, Congress passed the McCarran-Ferguson Act which makes state law which regulates the business of insurance controlling over federal laws like the Federal Arbitration Act.
Mr. Smith lived in a state that had an anti-arbitration provision when it came to insurance law. Although the policy said he had to arbitrate a Federal Court decided that state law trumped the Federal Arbitration Act and Mr. Smith was entitled to his day in court. As a result the insurance company would have to face a jury to explain why Mr. Smith should not receive the benefits of the insurance policy that he had purchased. The case settled for a large amount of money shortly thereafter. While arbitration may be appropriate in some cases, and even mandatory in some states it is not mandatory in every state. An insurance company may be from another state but if they sold a policy in your state you should check your legal rights before being forced into arbitration by an insurance company.
Ever call someone who never calls you back? You start to wonder if they are screening their calls and just don't want to talk to you. Sometimes insurance companies act that way by ignoring you when you have made a claim.
If you’re insurance company is not responding you have a way to fight back. The Unfair Claims Settlement Practices Model Regulations require that your insurance company respond to your claim in 15 days. The insurance company must accept or deny your claim and tell you why in writing. If for some reason your insurance company needs more time they must tell you within 15 days why the need more time and there position must be reasonable.
Virtually every state has adopted the Model Act or its equivalent and violations may be reported to your State Department of Insurance. In some states violations may give you the right to sue your company for violation of the Act. Even where you cannot sue for violation of the Act, its violation may be used as proof of a breach of contract or bad faith claim.
So what do you do if your insurance company is screening their calls? Write them a letter and tell them that under the Unfair Claims Settlement Practice Act they have a limited time to respond to your claim, and you want an answer in writing as required by the Act. I bet they will get back to you, but if not complain to your department of insurance and then consult with an attorney who handles insurance claims denials.
Do you have auto insurance liability limits that are different than your uninsured and uninsured coverage? If so, then you’re willing to have your insurance company pay more to people you injure than if someone injures you. From a self protection and risk prospective that does not make much sense. So if you have liability limits of $100,000.00 per person you should have the same limits for your uninsured and underinsured coverage. Considering how inexpensive this coverage is, and how valuable it can be should a negligent uninsured or underinsured driver injures you, it’s a smart buy.
When you have a claim or suit made against you, and your insurance company does not believe that you have coverage under the policy it may send you a reservation of rights letter. Sometimes they might ask you to sign something called a non-waiver agreement, but it boils down to the same thing, the company wants to retain its arguments and its right to sue you. Not a very nice way to treat you, the customer, and you can just forget those fancy slogans and promises they told you when you got your policy. Remember how your insurance company would be on your side, you would be in good hands and treated like a neighbor. Well now you are on the wrong side, the hand you’re getting is a fist to the jaw, and they want to run you out of the neighborhood. So get smart, and quick.
Under a reservation of rights the insurance company offers to defend you, but the insurance company is not conceding that the insurance policy covers the claim against you. If it is not covered, you will have to pay back the insurance company for any of the benefits it extended such as attorneys fees which you are received under the policy. However, if it is covered, you will have not have to pay back your insurance company for its legal costs and other expenses it incurs.
Unfortunately, when an insurance company issues a reservation of rights, it is looking out for its own interests, and may not really be looking out for yours. This puts you in a legal limbo of sorts as your insurance company is talking out of both sides of its mouth. Your insurance company is both offering to hire an attorney of its choosing to defend you, while at the same time maintaining the legal right to sue its own insured. In fact you may be sued by the insurer while at the same time the insurance company hires another lawyer to defend you. So you are a defendant in the original claim, and now you are being sued by your insurance company.
In some cases under this type of process the attorney representing you that are paid for by the company may have a conflict of interest. If so, your company may be required to appoint another lawyer. In my opinion it is always in your best interest to hire your own lawyer who can help you with the insurance company and keep an eye on the lawyer that the company hired and is supposed to be on your side.
In some states you may reject the reservations and are not required to accept the defense unless it is without any conditional coverage issues, and in other states you are not allowed this right. In states in which you are not required to accept the reservations, you should consult with a private attorney who may help you enter a settlement agreement with the person bringing the claim to protect your financial interests and assign any claims you may have against your insurer to the person making the claims against you.
The Detroit Free Press reported that legislators are considering legislation to help protect policyholders form insurance companies that drag out or deny legitimate claims. The bill would allow the state insurance commissioner to levy a fine of up to $1 million. It would create civil penalties up to triple the cost of the original claim and 5-year felonies for insurance company executives who encourage wrongful denial of claims.
Insurance industry spokespeople criticized the proposal as politically motivated, unnecessary and likely to drive up insurance costs with frivolous lawsuits.
Lori Conarton, spokeswoman for the Michigan Insurance Institute, said only a small percentage of claims filed in the state are disputed. She said insurance company employees work hard to help customers recoup their losses.
"We're not flagrantly denying claims. Every once in a while, mistakes happen," Conarton said, adding that laws already exist that require insurers to handle claims swiftly.
Advocates say however that present laws are too weak. "No one should have their life ruined because an insurance company won't do what it promised," said Rep. Barb Byrum, D-Onondaga.
At news conferences, individuals gave tearful accounts of physical and financial distress they suffered after they were denied insurance claims for auto-related injuries.
Jo Anne Katzman, a claims adjuster, told reporters she quit Allstate Insurance Co. in 2003 because she and other adjusters were pressured to deny claims to people who deserved them.
"I could not look someone in the face and say I'm denying their claim when I know it was legitimate," Katzman said. "It's a huge problem…."
Unfortunately, consumers having problems with insurance claims practices are not uncommon. While department’s of insurance can help create a more fair environment, if you have had a claim denied you need individual help from a lawyer who is experienced in fighting with insurance companies. Contact Chris Faiella at 1-800-264-3455 for a free, consultation. Chris will help you determine your options and advise you as to the course of action that will best suit your individual situation.
Underinsured motorist coverage (UIM) covers you and your passengers for damage caused by another motorist who has insufficient insurance to cover the damages caused. This type of coverage compensates you or your passenger for the deficiency in the coverage of the motorist who caused the collision and injuries. The definition of what is an underinsured motorist is defined by the policy and can be modified by state law. Generally there are two ways insurance companies approach this definition, a less than approach or a damages approach. Insurance companies that use a less than approach define underinsured motorist as someone who has less coverage than your auto insurance liability limits. For example, if the driver that hit and injured you has $25,000.00 dollars of liability coverage and you have $100,000.00 of underinsured coverage the driver that hit you is an underinsured motorist. If that driver had $100,000.00 in liability limits the other driver would not be an underinsured driver. The other general approach is to define an underinsured motorist as someone who has limits that are insufficient to cover the insured's damages. Thus, if the opposing driver had $100,000.00 of liability coverage and you had $100,000.00 of underinsured coverage the opposing driver would be underinsured if you had more than $100,000.00 of damages. Thus when purchasing underinsured motorist coverage insurance you should try to determine which approach your company has taken, as the damages approach is much more favorable to you, your family and passengers.
If you have a claim where you have been hurt by another driver you need to look not only at the opposing drivers polices but at your own to insure policy to see if you can collect any benefits under your own policy. If you need assistance contact Chris Faiella, with the law firm of Tatlow, Gump & Faiella at 1-800-264-3455 for a free, consultation. Chris will help you determine your options and advise you as to the course of action that will best suit your individual situation.
Uninsured motorist coverage (UM) covers you and your passengers for damage caused by another motorist who has no insurance. This type of coverage compensates you and your passengers for the lack of insurance being carried on the vehicle that caused the injuries. It also covers vehicles that caused injuries but can’t be identified. These are often referred to as phantom vehicles.
If an opposing driver has no insurance this is coverage on your policy that will cover that deficiency up to the policy limits. In many states, such as Missouri, an insured policyholder can stack their UM limits when they are injured an uninsured driver. This means that for every insured vehicle you own the limits of that vehicle can be stacked to help cover your damages. For example, if you are injured by an uninsured driver and you own two cars with $100,000.00 of UM each you can stack those limits and collect up to $200,000.00 for your damages. While it seems clear that Um applies when someone has no insurance the issue can be complicated by how the policy defines an uninsured motorist.
Polices that are favorable to the insured define an uninsured motorist as anyone having less that the State mandatory minimum liability limits for the State where your car is licensed. However, some policies can define an uninsured motorist as a person having no insurance. Because some States require different mandatory liability limits less than the State in which you live an insurance company could take the position that a driver with $10,000.00 of coverage is insured. Thus, using the numbers above under this type of policy you would not collect up to $200,000.00 dollars but only $10,000.00. However, if uninsured was defined as less than your State’s mandatory limits and your state required more than the other driver’s $10,000.00 you could collect up to $200,000.00 dollars. When you shop for insurance ask how the policy defines an uninsured motorist as it can make a big difference in what benefits you receive.
If you have a claim where you have been hurt by another driver you need to look not only at the opposing drivers polices but at your own to insure policy to see if you can collect any benefits under your own policy. If you need assistance contact Chris Faiella, with the law firm of Tatlow, Gump & Faiella at 1-800-264-3455 for a free, consultation. Chris will help you determine your options and advise you as to the course of action that will best suit your individual situation.
Uninsured and Underinsured coverage may or not be in your auto policy for a number of reasons. Some states require both some require uninsured but not underinsured and some don't require either coverage. Even in States that require both, you may not have enough to truly cover your situation. It is very common in my practice as an attorney to deal with people who have a serious injury as a result of the other drivers fault. Unfortunately, it's just as common to find that the other driver has no insurance or not enough to cover the damage caused to the injured person's life.
Uninsured and underinsured motorist are very useful coverages to protect yourself and your family. Uninsured coverage, also called UM, provides protection when the person injuring the policyholder/claimant does not have any insurance, or less than your States required limits for liability insurance. Underinsured coverage, also called UIM, provides protection when the other driver is insured but his limits are not adequate to cover your damages.
From a risk prospective it makes sense that you have both coverages even if your state does not require the coverage. Despite mandatory insurance laws as many as 1 in 7 drivers are uninsured. If you are injured bad enough most private motorist are going to be underinsured for your injuries as the most common liability insurance limit on passenger vehicles is $25,000.00. This is hardly enough to compensate for the medical bills, and lost pay even a moderate injury would cause. To protect yourself and your family you should consider buying limits that are more than $25,000.00. The good news is that this insurance is not generally very expensive compared to liability insurance. If you are not sure what limits to get, consider this, I have never had a single seriously injured client who regretted buying UM and UIM protection. I have had many who regretted not getting enough. I consider $100,000.00 the minimum safe limit to purchase. If you don't know if you have it check your declarations page, or contact your agent or insurance company.
Many people think they have "full coverage" which from my experience means nothing. Some agents tell clients they have full coverage when they purchase the state required insurance, and others mean that you have added optional coverages. The only way to make sure you have enough UM and UIM is to verify it by reviewing your policy or asking your insurance company or agent specifically about the coverage.
