Injury Lawyer Insurance Claims & Settlements 2

Question 1

What is 'first-party' insurance in personal injury claims?

Accepted Answer

Insurance the policyholder purchases to cover their own losses

Answer

First-party insurance covers the policyholder's own losses, such as PIP (personal injury protection) or MedPay, regardless of who was at fault.

Question 2

What does 'PIP' (Personal Injury Protection) insurance cover?

Accepted Answer

Medical expenses, lost wages, and related costs for the policyholder regardless of fault

Answer

PIP is a no-fault insurance coverage that pays the policyholder's medical expenses and lost wages after an accident regardless of who caused it.

Question 3

In settlement negotiations, what is a 'high-low agreement'?

Accepted Answer

A binding agreement setting a minimum and maximum range for the jury's verdict, regardless of actual outcome

Answer

A high-low agreement sets a guaranteed minimum payment to the plaintiff and a capped maximum the defendant must pay, regardless of the jury's actual verdict.

Question 4

What is a 'consent to settle' clause in a liability insurance policy?

Accepted Answer

The insured must consent before the insurer settles the claim against them

Answer

A consent to settle clause requires the insurer to obtain the insured's permission before settling a claim, protecting the insured's reputation and preventing collusive settlements.

Question 5

What is 'Med-Pay' coverage in an auto insurance policy?

Accepted Answer

No-fault medical payments coverage for occupants injured in the policyholder's vehicle

Answer

Med-Pay (Medical Payments) coverage pays medical expenses for the policyholder and passengers injured in their vehicle regardless of fault, up to the policy limit.

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Injury Lawyer Practice Test

Injury Lawyer Insurance Claims & Settlements 2