accident attorney Insurance Claims and Negotiations 2

Question 1

What is 'subrogation waiver' and why would a plaintiff request it in a settlement?

Accepted Answer

A release by the insurer of its right to seek reimbursement from the settlement, allowing the plaintiff to keep more of the recovery

Answer

A waiver of the plaintiff's right to sue the insurer

Answer

A court order dismissing all liens against the settlement

Answer

An agreement by the defendant to pay liens directly

Question 2

What is a 'structured settlement' in a personal injury case?

Accepted Answer

Payment of the settlement in periodic installments over time rather than a single lump sum

Answer

A settlement that structures blame between multiple defendants

Answer

A court-ordered repayment plan for a defendant

Answer

Settlement paid exclusively to the plaintiff's attorney

Question 3

What is 'excess verdict' exposure for an insurer?

Accepted Answer

A jury verdict that exceeds the defendant's policy limits, potentially leaving the insurer liable for the full amount if it acted in bad faith

Answer

A verdict awarding more than the plaintiff requested

Answer

Punitive damages that exceed compensatory damages

Answer

A verdict in a case where coverage is disputed

Question 4

What is 'stacking' of medical bills (billing inflation) and how do accident attorneys address it?

Accepted Answer

Providers charging inflated rates knowing litigation is pending; attorneys negotiate reductions at settlement

Answer

The plaintiff seeking treatment from multiple doctors for the same injury

Answer

The insurer bundling multiple claims into one payment

Answer

The court consolidating multiple plaintiffs' cases

Question 5

What triggers an insurer's 'duty to defend' a policyholder in a lawsuit?

Accepted Answer

Any complaint alleging facts that, if true, would potentially be covered by the policy

Answer

Only when coverage is confirmed after investigation

Answer

Only when the policyholder formally requests defense

Answer

When the verdict exceeds the deductible amount

Question 6

What is a 'release' in a personal injury settlement?

Accepted Answer

A legal document signed by the plaintiff giving up all future claims against the defendant in exchange for the settlement payment

Answer

An insurer's authorization to pay a claim

Answer

A court order ending the lawsuit

Answer

A document releasing medical records to the insurer