Injury Lawyer Insurance Claims & Settlements

Question 1

What is 'liability coverage' in auto insurance as it relates to injury claims?

Accepted Answer

Coverage that pays damages to third parties injured by the policyholder's negligence

Answer

Coverage that pays the policyholder's own medical bills

Answer

Coverage for the policyholder's vehicle repairs

Answer

Coverage for uninsured drivers

Question 2

What is 'uninsured motorist' (UM) coverage?

Accepted Answer

Coverage for the policyholder when hit by a driver with no insurance

Answer

Coverage for vehicles that are not registered

Answer

Coverage for accidents on private property

Answer

Coverage for commercial vehicles

Question 3

What does 'bad faith' mean when an insurer handles a personal injury claim?

Accepted Answer

Unreasonable refusal to pay a valid claim or failure to conduct a proper investigation

Answer

The insurer denies a claim without review

Answer

The insurer delays payment by one week

Answer

The insurer requests additional documentation

Question 4

What is a 'policy limits' demand in personal injury settlement negotiations?

Accepted Answer

A settlement demand equal to the full amount of the defendant's insurance coverage

Answer

A demand that the insurer change the policy terms

Answer

A demand for punitive damages only

Answer

A demand for immediate payment without documentation

Question 5

What is 'underinsured motorist' (UIM) coverage?

Accepted Answer

Coverage when the at-fault driver's insurance is insufficient to cover all damages

Answer

Coverage for drivers under age 25

Answer

Coverage for vehicles worth less than $10,000

Answer

Coverage for accidents in foreign countries

Question 6

What is a 'reservation of rights' letter from an insurer?

Accepted Answer

A letter notifying the insured that the insurer is investigating while reserving the right to deny coverage

Answer

A letter offering a settlement

Answer

A letter demanding additional premiums

Answer

A letter granting full coverage for the claim