Injury Lawyer Insurance Claims & Settlements 1

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

Liability coverage pays for bodily injury and property damage the policyholder causes to others, which is the primary source of compensation in auto accident injury claims.

Question 2

What is 'uninsured motorist' (UM) coverage?

Accepted Answer

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

Answer

UM coverage protects the policyholder and passengers when injured by a driver who has no liability insurance or is a hit-and-run driver.

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

Insurance bad faith involves an insurer's unreasonable denial or delay of a valid claim, failure to investigate, or refusal to settle within policy limits without justification.

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 policy limits demand requests the full amount of the defendant's available insurance coverage, often used when damages clearly exceed or approach the policy limit.

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

UIM coverage applies when the at-fault driver has insurance but the coverage limits are too low to fully compensate the injured plaintiff.

Injury Lawyer Practice Test

Injury Lawyer Practice Test

Injury Lawyer Insurance Claims & Settlements 1