Accident Lawyer Insurance Settlement Negotiations 2

Question 1

What is a 'release of liability' document in a personal injury settlement?

Accepted Answer

A legal document waiving the plaintiff's right to sue in exchange for settlement payment

Answer

A release of liability is a binding legal agreement where the plaintiff gives up their right to bring further claims in exchange for the agreed settlement amount.

Question 2

What negotiation tactic involves starting with a low offer to 'anchor' the settlement range?

Accepted Answer

Lowballing

Answer

Lowballing is a tactic where an insurer offers a very low initial figure to anchor negotiations below fair value and reduce the final settlement amount.

Question 3

What does 'first-party' coverage mean in accident insurance?

Accepted Answer

Coverage that pays the insured for their own losses regardless of fault

Answer

First-party coverage, such as MedPay or PIP, compensates the policyholder for their own losses regardless of who caused the accident.

Question 4

What is 'excess judgment' liability in insurance claims?

Accepted Answer

A judgment against the insured that exceeds the policy limits, creating personal liability

Answer

An excess judgment occurs when a court verdict against the insured exceeds the policy limits, making the insured personally responsible for the difference.

Question 5

What is 'Medical Payments' (MedPay) coverage in auto insurance?

Accepted Answer

No-fault coverage that pays the policyholder's medical expenses regardless of who caused the accident

Answer

MedPay is a no-fault auto insurance coverage that pays the policyholder's and passengers' medical bills up to the policy limit, regardless of fault.

Accident Lawyer Practice Test

Accident Lawyer Practice Test

Accident Lawyer Insurance Settlement Negotiations 2