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

Insurance bad faith occurs when an insurer unreasonably denies, delays, or undervalues a valid claim, and can expose the insurer to punitive damages.

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

A policy limits demand within a reasonable time can expose an insurer to bad faith liability for the full verdict if they refuse and a higher judgment is entered.

Question 3

What is 'stacking' of auto insurance policies?

Accepted Answer

Combining coverage from multiple vehicles or policies to increase available compensation

Answer

Insurance stacking allows policyholders to combine UM/UIM limits from multiple vehicles or policies to maximize available coverage.

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 is mandatory in no-fault states and covers medical expenses, lost income, and related costs without regard to who caused the accident.

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

A 100/300 policy pays up to $100,000 per injured person and a total of $300,000 per accident regardless of how many are injured.

Auto Accident Attorney Practice Test

Auto Accident Attorney Practice Test

Auto Accident Attorney Insurance Claims 2