accident attorney Insurance Claims and Negotiations

Question 1

What is an 'independent medical examination' (IME) and who typically requests it?

Accepted Answer

A medical evaluation ordered by the defense or insurer to assess the plaintiff's injuries and causation

Answer

An examination conducted by the plaintiff's treating physician

Answer

A government-mandated medical review

Answer

An examination required before filing a lawsuit

Question 2

What is 'bad faith' insurance handling?

Accepted Answer

An insurer's unreasonable refusal to settle a valid claim, pay benefits, or properly investigate, exposing it to extra-contractual damages

Answer

A dishonest misrepresentation by the policyholder on the application

Answer

A fraudulent accident staged by the claimant

Answer

An attorney negotiating outside the policy limits

Question 3

What is a 'policy limit' demand and why does it matter in settlement negotiations?

Accepted Answer

A demand that the insurer pay its full policy limits to settle the claim, which if refused can expose the insurer to excess liability

Answer

A demand the plaintiff reduce their claim to fit within the policy

Answer

A court order capping damages at policy limits

Answer

An agreement to settle for less than the policy maximum

Question 4

What is an 'offer in compromise' or Section 998 offer (in California) in personal injury litigation?

Accepted Answer

A statutory offer to settle that shifts cost-burden to the rejecting party if they fail to beat the offer at trial

Answer

A government tax compromise for settlement proceeds

Answer

An attorney's internal settlement authority

Answer

A mandatory mediation requirement

Question 5

What is a 'lien' in the context of a personal injury settlement?

Accepted Answer

A claim by a third party (insurer, hospital, or government) against the settlement proceeds for benefits paid on the plaintiff's behalf

Answer

A court freeze on the defendant's assets

Answer

A mortgage on the plaintiff's home to fund litigation

Answer

An attorney's claim for unpaid fees

Question 6

What is 'first-party' vs. 'third-party' insurance coverage in accident claims?

Accepted Answer

First-party claims are against your own insurer; third-party claims are against the at-fault party's insurer

Answer

First-party is for property damage; third-party is for bodily injury

Answer

First-party pays medical bills; third-party pays lost wages

Answer

First-party is no-fault coverage; third-party is fault-based coverage