Insurance

Published on: June 25, 2012

Minimum MAIF Insurance: $30,000 Protection For Hit-and-Run/Phantom Driver Accidents

We reported back in February that the Maryland legislature was considering a bill that would increase the minimum amount of MAIF insurance for uninsured drivers to $30,000 (Not Fair: Maryland Law Makes You Carry $30,000 Auto Insurance, But You Might Have a Maximum $20,000 Recovery).

The problem was that just over a year ago, the minimum amount of automobile insurance for all Maryland drivers was $20,000 per person and $40,000 per accident. Those minimums have been in place for over 35 years, and they were increased to $30,000 per person and $60,000 per accident. The law that increased the amount recoverable for Maryland automobile accident victims was missing one thing, though. It forget to mention the uninsured division of MAIF.

MAIF (Maryland Automobile Insurance Fund) is the insurance company of last resort for drivers who are rejected by most other insurance companies. They insure the uninsurable. MAIF also performs another function–when someone is involved in a Maryland automobile accident with someone who does not have insurance, or in a hit-and-run accident, MAIF will step in to help. They don’t step in voluntarily–usually it takes a lawsuit, but if there is no other insurance available, MAIF will cover the accident up to the minimum amount. Even after the 2011 change, MAIF was still only on the hook for $20,000/$40,000.

Published on: June 12, 2012

Colossus: Using Artificial Intelligence To Value Automobile Accident Injuries

By Posner & Cord, LLC

Colossus of Rhodes.jpg Colossus is a software program used by many insurance companies to determine the value of automobile accident claims and lawsuits. The software program gets a bad rap from plaintiff’s lawyers–probably because it undervalues those claims. Now, a former Allstate and Encompass Colossus expert and a former Texas insurance commissioner are informing the Consumer Federation of America’s latest report, Low Ball: An Insider’s Look at How Some Insurers Can Manipulate Computerized Systems to Broadly Underpay Injury Claims.

That report details the means by which adjusters can use the software to produce lower evaluations of claims. Insurance adjusters can discount medical bills, evaluate injuries differently than doctors, ignore the likelihood of future medical care, and decide that the claimant/victim was partially at fault for the auto collision.

It sounds like the report is concerned that insurance adjusters might be doing their job.

Published on: April 19, 2012

Lessons Learned From Second Shut-Down of Anne Arundel County Truck Company

By Posner & Cord, LLC

18-wheeler truck accident Truck drivers are subject to a great deal of regulation, and rightly so. These are huge machines, and the smallest errors, whether because of driver fatigue, inadequate pre-trip inspections, or distracted driving, can cause life-altering destruction. There is always an incentive by truck companies to cut corners, cut costs, and improve their bottom line. The good trucking companies ignore those incentives, and play it safe. The bad ones skirt the federal and state regulations, and cause Maryland truck accidents.

Here’s the story of one really bad one. Unfortunately, it’s a local business, based out of Anne Arundel County, Maryland. In November 2011, trucking company Gunthers Transport LLC was forced by the federal government to close up shop. Gunthers, an “imminent hazard to the public,” was cited for safety violations and seven collisions within a one-year period. The company was caught falsifying driver logs to circumvent driver rest and sleep requirements. In the 1990’s a prior version of the company recently lost a civil lawsuit from a situation where one of its drivers killed one person and left another permanently disabled. The company declared bankruptcy, and still owes its victim a substantial amount of the $16.5 million judgment.

Just a few weeks later, a new company was born–Clock Transport LLC. Interestingly enough, it had the same address as Gunthers, and the person in charge was the son of Gunthers. Maryland State Police quickly noticed this, and made it a point to pull over every single truck from that address to check for safety violations.

Published on: April 5, 2012

Maryland Punitive Damages: Not For Auto Accidents, And Not For Drunk Driving Lawsuits

By Posner & Cord, LLC

Many clients come to us expecting that they will be entitled to punitive damages in their Maryland auto accident. This is especially true in cases where the negligent driver was drunk, or tried to flee the scene of the auto accident, or was driving while texting. Sadly, punitive damages are rarely available, even in these extreme examples.

Punitive damages are “damages on an increased scale, awarded to the plaintiff over and above what will barely compensate him for his property loss, where the wrong done to him was aggravated by circumstances of violence, oppression, malice, fraud, or wanton and wicked conduct on the part of the defendant.” (Black’s Law Dict., 1991 ed., pg. 390). These damages are intended to punish the defendant, to make an example of him.

Every state has its own law on punitive damages. In Maryland, the purpose of punitive damages is to punish the defendant for egregiously bad conduct toward the plaintiff, and also to deter the defendants and others contemplating similar behavior. The standard in Maryland is gross negligence or actual malice.

Published on: February 29, 2012

Why You Need Better Car Insurance

By Posner & Cord, LLC

Happy MAIF driver.JPG I don’t work for the insurance industry. Sometimes, I don’t like the insurance industry. We disagree about a lot of things, like to what extent my clients are hurt because of the negligence of their drivers, and what they should pay for it.

But even with its problems, car insurance is important. It is important for all drivers to have insurance to pay claims if they make a mistake–run a red light, fail to see a pedestrian in a crosswalk, or make a left-hand turn before it is really safe to do so. I want insurance so that if I hurt someone, they can recover without having to pay for their own medical bills. It’s just personal responsibility–I’m responsible for the damage I cause (it’s “you break it, you buy it” applied to the road).

There is at least one other reason to have good insurance. The other drivers. Take this excerpt from the The MAIF Agent Blog:

Published on: February 13, 2012

Not Fair: Maryland Law Makes You Carry $30,000 Auto Insurance, But You Might Have a Maximum $20,000 Recovery

By Posner & Cord, LLC

I'm Just a Bill In 2011, the Maryland Legislature decided that the minimum limits for automobile insurance, which were over 35 years old, needed to be increased. The limits were $20,000 per person/$40,000 per occurrence. They were increased to $30,000/$60,000. Not quite a cost-of-living adjustment (one inflation calculator told me that $20,000 in 1972 would be $107,626 in 2011 dollars). But, it’s something, anyway.

The goal of the 2011 legislation was further protect Maryland drivers. Healthcare costs and lost wages following a Maryland automobile accident can be high. The increase eases the pain a little bit. The problem with the 2011 change was that it did not include the uninsured division of the Maryland Automobile Insurance Fund (MAIF).

Not only does MAIF insure (the otherwise uninsurable) drivers of Maryland (who are now required to have $30,000/$60,000), but it also provides protection to people who are in accidents with uninsured motorists, when the victims have no other source of insurance. For example, pedestrians hit by uninsured drivers; and people in bus accidents or taxi accidents who are injured in hit-and-run accidents. In order to pay those claims, MAIF collects a little bit of money from other insurance policies. So, a portion of my Allstate insurance premium goes to the MAIF fund.

Published on: January 31, 2012

Phantom Vehicles: Is Help As Fictional As Ghostbusters?

By Posner & Cord, LLC

Phantom Vehicle.jpg Many people come to us because they’ve been in an accident, but they are unsure what their options are. This is rarely more true than in the phantom vehicle case. This is where there is an accident, but no sign of the person who caused the accident. These cases are sometimes hit-and-run accidents, though phantom vehicle cases can happen where the phantom vehicle takes the right-of-way from another motorist, causing that motorist to hit a third motorist (while the phantom vehicle goes merrily along its way). In many cases, these are pedestrian hit-and-runs.

What can be done? Fortunately, Ghostbusters aren’t needed. There are usually two options.

First, if you have uninsured motorist (UM) protection on your automobile insurance policy, you can file a claim against your insurance company, which will stand in the place of the phantom vehicle. You will have to prove your claim, either to the insurance company’s satisfaction or to a judge/jury. In some cases, though, your testimony alone may be sufficient proof (independent witnesses who saw the phantom vehicle wouldn’t hurt your case, however).