Auto Accident Attorney Insurance Claims 2

Question 1

What is 'bad faith' in auto insurance and what remedies are available to policyholders?

Accepted Answer

Unreasonable insurer conduct in handling claims; remedies include extra-contractual damages and attorney fees

Answer

Filing a fraudulent insurance claim

Answer

Refusing to cooperate with an investigation

Answer

The insurer canceling a policy without notice

Question 2

What is the significance of a 'policy limits' demand in auto accident negotiations?

Accepted Answer

It demands the full insurance policy limit to settle the case, which if rejected may expose the insurer to excess judgment liability

Answer

It caps the amount a plaintiff can recover in court

Answer

It requires the insurer to pay immediately without investigation

Answer

It allows the plaintiff to choose which insurance policy applies

Question 3

What is 'stacking' of auto insurance policies?

Accepted Answer

Combining coverage from multiple vehicles or policies to increase available compensation

Answer

Purchasing multiple policies for the same vehicle to defraud insurers

Answer

The process of prioritizing which insurer pays first

Answer

Combining medical bills from multiple providers into one claim

Question 4

What is Personal Injury Protection (PIP) coverage and which states require it?

Accepted Answer

PIP pays medical expenses and lost wages regardless of fault; required in no-fault states like Florida, Michigan, and New York

Answer

PIP covers only vehicle damage; required in all states

Answer

PIP is optional coverage available only for motorcycles

Answer

PIP pays property damage caused by the insured

Question 5

What does 'per occurrence' vs. 'per person' mean in auto liability insurance limits?

Accepted Answer

Per person is the max per individual claimant; per occurrence is the total max for all claims from one accident

Answer

Per occurrence means the premium per year; per person means the deductible

Answer

They are different terms for the same coverage amount

Answer

Per person applies only to medical payments; per occurrence applies to property damage

Question 6

What is an 'independent medical examination' (IME) in auto accident insurance claims?

Accepted Answer

An exam ordered by the insurer with a doctor of their choosing to evaluate the claimant's injuries

Answer

An exam conducted by the claimant's own doctor to establish injury severity

Answer

A court-ordered evaluation for criminal cases only

Answer

An annual wellness check required by insurance policies