Articles Tagged with insurance

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CSX 1.jpgI lived in Charles Village for most of Maryland life–we recently moved to Hampden, but Charles Village was where I lived during law school, two apartments, my first new home, and the infancy of our oldest daughter.

By now, everyone knows about the collapse of the street at 26th Street between Charles and St. Paul streets. My wife called that area, pre-collapse, the most beautiful street in Baltimore. The rowhomes are idyllic, the greenery is perfect, and the whole area feels like a little island placed in the middle of Baltimore City. But now, it’s just chaos.

Residents have lost cars, and have been evicted from their homes while the City and CSX try to figure out what happened, how safe it is, and what needs to be done to get everything repaired. Locals will tell you that it’s too little, too late, and that there have been several complaints made over the years to the City and to CSX officials. The general consensus is that repairs to cracks have been piecemeal and little more than cosmetic fixes. Right now, the estimate is that residents will be displaced for about 40 days. There is a program to help ease the transition, but it’s certainly inadequate. There have been reports so far that automobile insurers are denying coverage for vehicles lost in the street collapse.

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Record Button.jpgAttorneys are an argumentative bunch. We disagree on many things, so when we agree on something, you should take notice. Something we agree on–don’t give a recorded statement to the insurance company after an automobile collision. It doesn’t matter if it is your insurance company, or the negligent driver’s insurance company.

Let’s talk about why the insurance companies want to get you on an audio recording. First, the mundane–they want to know the facts of the accident, the nature of your injuries, and what medical care you have received. They want to know what evidence you have, and whether there is anything that will help them to muster up more evidence.

Now, the insidious–the insurance companies want a recorded statement from you so that they can use it against you. They will take a recorded statement shortly after the accident. Down the road, when you file a lawsuit, you will answer written questions (called interrogatories) under oath. Then you may have a deposition, where they ask you more questions under the penalty of perjury. Finally, you will testify at trial, perhaps two or three or four years after the accident.

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Crash (2 vehicles).jpgI’ve had a few sad cases recently. In each case, my client was injured in an accident. In each accident, there were other people injured, as well. My clients went to the hospital, and were treated for their injuries. Neither of my clients had health insurance. Neither of them had UM/UIM insurance (neither of them drove a car, and neither lived with a family member who drove a car).

After they finished medical treatment, we sent demand letters to the insurance companies. In each case, the adjuster informed us that they could not settle our claims because there were limited insurance proceeds available, and that other victims were either still treating or hadn’t submitted their demand packages, yet. The limited insurance proceeds were in compliance with the Maryland minimums–$30,000/$60,000. That means that the most any one person in an accident can recover is $30,000, with the total allowed for all people in a single accident as $60,000.

So, not wanting to wait, we filed lawsuits. Other victims of each collision did, as well (though not all). When it was time for the insurance company to answer the complaint in one case, and when their discovery responses were overdue in another, they cried “uncle.” They tendered policy limits in each, and washed their hands of the whole matter saying “you plaintiffs divide it up.”

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Pill and Rx pad.pngIn Maryland auto accident claims, the victim of a negligent driver is entitled to recover the cost of all reasonably related medical expenses. For example, if a driver runs a red light and hits another vehicle, the emergency room visit for the other vehicle’s occupants should be paid by the negligent driver’s insurance company.

Sometimes, however, the injured person’s medical care is paid for by health insurance, or by personal injury protection (PIP) insurance. Maryland has a law called the collateral source rule, which says that the negligent driver cannot benefit from other payments made to the victim.

Under the collateral source rule, even if a victim’s medical bills are paid by insurance, the negligent driver must pay the value of those bills directly to the victim. In some cases (notably, PIP), the victim gets to keep the money. This is something like a double-recovery in some cases. However, it helps many smaller accident victims by making them whole, when the attorneys’ fees are factored in.

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Happy MAIF driver.JPGI 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: