Insurance Claims and Negotiations Flashcards
6 cards from real Accident Lawyer Tips practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Claims and Negotiations flashcards as text
What does 'liability limits' mean in an auto insurance policy?
Answer: The maximum amount the insurer will pay for a covered claim
Liability limits cap the insurer's payment obligation; amounts above those limits must be recovered from the at-fault driver personally or through other coverage.
What is 'medpay' coverage in auto insurance?
Answer: Medical payments coverage that pays medical bills regardless of fault
Medical payments (MedPay) coverage pays for medical expenses of you and your passengers regardless of who caused the accident.
Why is it dangerous to give a recorded statement to the opposing insurance company?
Answer: Statements can be taken out of context or used to minimize your claim
Opposing insurers use recorded statements to identify inconsistencies or admissions that reduce their liability exposure.
What is an 'Independent Medical Examination' (IME) in an insurance claim?
Answer: A medical exam ordered by the insurance company to evaluate your injuries
IMEs are conducted by doctors selected by the insurer and often used to challenge the extent of claimed injuries.
What does 'comparative fault' mean for your insurance claim in a shared-fault accident?
Answer: Your compensation is reduced by the percentage of fault attributed to you
In comparative fault states, compensation is proportionally reduced based on the victim's percentage of responsibility for the accident.
What is an 'umbrella policy' and why does it matter in accident claims?
Answer: Extra liability coverage above the at-fault party's standard auto policy limits
Umbrella policies provide an additional layer of liability coverage beyond standard auto policy limits, which is crucial when damages are severe.