Strategies, Challenges, and Answers

Settlement, Unsettled

The claimant’s counsel makes a policy limit demand. After receiving authority to settle for the liability limits, you tender the policy limit and your company’s standard Release.  Claimant’s counsel rejects the Release.  Instead, counsel insists on a Covenant Not to Execute.  Why would the attorney do that? This post will hopefully give you more information regarding the distinctions between these two types of settlement documents and the advantages and disadvantages of each. What is the … [Read more...]

When Is A UM/UIM Provider Bound By A Judgment Against The Tortfeasor?

Lucky for John Pietrosh, his parents bought UM/UIM coverage as part of their Allstate auto insurance policy.  Not so lucky for John, one day in July 1966, he was riding his bike when an uninsured driver hit and injured him. His parents reported the accident to their Allstate agent.  The agent responded that the family was “fully covered” and that it would “take care of the whole thing”. The Pietrosh family sued the uninsured driver and sent notice of the suit to Allstate.  Allstate did not … [Read more...]

The Attorney And The Hospital Have Competing Liens. How Can The Company Safely Settle?

You are familiar with this scenario. The claimant is willing to sign a release in exchange for your insured’s policy limit.  However, the claimant, the attorney and the hospital, all legitimate lienholders, can’t agree on how to divide up the money.  Sometimes there is just not enough money to go around. It seems like a no win situation. If the insurance company pays the settlement proceeds to the attorney without protecting the hospital lien, the hospital could pursue the insurance … [Read more...]