Auto Accident Lawyer Insurance Claims Process

Question 1

What is the term for the initial written demand sent to an at-fault driver's insurer outlining the basis for compensation after an auto accident?

Accepted Answer

Demand letter

Answer

A demand letter formally notifies the at-fault party's insurer of the claim, the injuries sustained, and the compensation sought.

Question 2

What does 'subrogation' mean in the context of auto accident insurance claims?

Accepted Answer

The insurer's right to sue the at-fault driver after paying the insured's claim

Answer

Subrogation allows an insurer who paid a policyholder's claim to step into the policyholder's shoes and seek reimbursement from the at-fault party.

Question 3

What type of auto insurance coverage pays for your own medical bills and lost wages regardless of who caused the accident?

Accepted Answer

Personal injury protection (PIP)

Answer

Personal injury protection (PIP) is no-fault coverage that pays the policyholder's medical expenses and lost wages regardless of fault.

Question 4

What is the process called when an insurer investigates a claim to determine coverage and liability before agreeing to pay?

Accepted Answer

Claims adjustment

Answer

Claims adjustment is the process by which an insurance adjuster investigates an accident, evaluates liability, and determines the amount the insurer will pay.

Question 5

What is an 'Independent Medical Examination' (IME) in an insurance claim context?

Accepted Answer

A medical exam requested by the insurer to evaluate the claimant's injuries

Answer

An IME is a medical examination arranged and paid for by the insurer, using a doctor of its choosing, to independently evaluate the claimant's injuries and treatment.

Auto Accident Lawyer Practice Test

Auto Accident Lawyer Practice Test

Auto Accident Lawyer Insurance Claims Process