Auto Accident Attorney Settlement Negotiations 2

Question 1

What is a 'time-limit demand' or 'Stowers demand' in auto accident insurance cases?

Accepted Answer

A demand to settle within policy limits by a set deadline; refusal can expose the insurer to liability for excess verdicts

Answer

A demand that the claimant respond within 30 days or lose the right to sue

Answer

A state-mandated timeline for insurance companies to pay claims

Answer

A demand that applies only in commercial truck accident cases

Question 2

What is a 'Medicare Secondary Payer' (MSP) lien and how does it affect auto accident settlements?

Accepted Answer

A federal obligation requiring Medicare to be reimbursed from settlement proceeds for accident-related medical expenses it paid

Answer

A program where Medicare pays secondary to the defendant's insurance

Answer

A lien that only affects settlements over $1 million

Answer

A claim filed by Medicaid, not Medicare, against settlement proceeds

Question 3

What is a 'high-low agreement' in auto accident trial negotiations?

Accepted Answer

An agreement that guarantees the plaintiff a minimum recovery and caps the defendant's maximum payment regardless of the jury verdict

Answer

An agreement between attorneys about the range of acceptable voir dire questions

Answer

A pricing structure for structured settlement annuities

Answer

An agreement where the highest bidder among insurers pays the claim

Question 4

What is 'nuisance value' in auto accident settlement negotiations?

Accepted Answer

A small settlement amount paid to make a weak or frivolous claim go away even when liability is disputed

Answer

The estimated cost of repairing minor vehicle damage

Answer

A penalty for filing meritless insurance claims

Answer

The settlement value for non-serious soft tissue injuries only

Question 5

What is 'allocation' and why does it matter in auto accident cases involving multiple claims?

Accepted Answer

Distributing a settlement amount among multiple injured parties or among different types of damages, which can affect taxes and liens

Answer

The process of dividing attorney fees in class action cases

Answer

Allocating blame between multiple defendants before settlement

Answer

The division of property damage and personal injury into separate cases

Question 6

What is a 'confidential settlement' and what are its limitations in auto accident cases?

Accepted Answer

A settlement that includes a non-disclosure agreement preventing parties from discussing terms; limited by public policy in some states for dangerous defendants

Answer

A settlement where the amount is sealed by court order without party agreement

Answer

A settlement that is confidential only from opposing counsel

Answer

Any settlement reached before a lawsuit is filed