Truck Accident Lawyer Insurance Claims & Negotiations 1

Question 1

What is the minimum liability insurance coverage required by federal law for a for-hire truck carrier transporting non-hazardous freight weighing over 10,001 pounds?

Accepted Answer

$750,000

Answer

FMCSA regulations require at least $750,000 in public liability insurance for general freight carriers, with higher minimums for hazardous cargo.

Question 2

What is a 'reservation of rights' letter from a trucking company's insurer?

Accepted Answer

A letter informing the insured that the insurer will investigate and defend the claim while reserving the right to deny coverage

Answer

A reservation of rights letter allows the insurer to provide a defense while preserving its ability to later deny coverage if a policy exclusion applies.

Question 3

Why do truck accident claims often involve multiple insurance policies?

Accepted Answer

Because trucks may be owned by one party, leased to another, and the driver may have personal coverage, creating layered policies

Answer

Ownership, leasing, and operator arrangements in the trucking industry can trigger multiple policies, and attorneys must identify all available coverage to maximize recovery.

Question 4

What is 'bad faith' insurance handling in a truck accident claim?

Accepted Answer

An insurer's unreasonable refusal to investigate, settle, or pay a valid claim, exposing it to extra-contractual damages

Answer

Insurance bad faith occurs when an insurer unreasonably denies or delays a legitimate claim, and victims can sue for damages beyond the policy limits.

Question 5

What is an 'excess' or 'umbrella' policy in trucking insurance?

Accepted Answer

A policy that provides additional coverage above the primary policy's limits once those limits are exhausted

Answer

Umbrella and excess policies kick in when the primary liability policy is exhausted, providing another layer of coverage for catastrophic truck accident claims.

Truck Accident Lawyer Practice Test

Truck Accident Lawyer Practice Test

Truck Accident Lawyer Insurance Claims & Negotiations 1