accident attorney Insurance Claims and Coverage

Question 1

What does liability insurance cover in an auto accident?

Accepted Answer

Damages the policyholder causes to others, including bodily injury and property damage

Answer

Damage to the policyholder's own vehicle

Answer

The policyholder's own medical bills

Answer

Theft of the policyholder's vehicle

Question 2

What is uninsured motorist (UM) coverage?

Accepted Answer

Coverage protecting the insured when injured by a driver who has no liability insurance

Answer

Coverage for accidents in uninsured parking lots

Answer

Coverage for drivers who let their own policy lapse

Answer

Coverage that replaces all insurance when a driver is uninsured

Question 3

What is underinsured motorist (UIM) coverage?

Accepted Answer

Coverage that pays the difference when the at-fault driver's insurance is insufficient to cover all damages

Answer

Coverage for drivers who are underinsured themselves

Answer

A government program for low-income drivers

Answer

Coverage applied when the policyholder causes an accident

Question 4

What is a policy limit and why does it matter in accident settlements?

Accepted Answer

The maximum amount an insurer will pay under a policy, which caps potential recovery from that insurer

Answer

The minimum amount required to file a claim

Answer

The time limit for filing an insurance claim

Answer

The deductible amount owed by the insured

Question 5

What is a bad faith insurance claim?

Accepted Answer

A claim that an insurer unreasonably denied, delayed, or undervalued a valid insurance claim

Answer

A fraudulent claim submitted by the insured

Answer

A claim filed after the statute of limitations has run

Answer

A claim disputed by both parties in arbitration

Question 6

What is a reservation of rights letter from an insurer?

Accepted Answer

A notice that the insurer will defend the insured but reserves the right to deny coverage later based on policy terms

Answer

A letter granting the insured the right to choose their own attorney

Answer

An insurer's agreement to pay the full policy limit

Answer

A denial of the insurance claim