As discussed it is just as important to your
recovery that there is adequate insurance coverage
to compensate you when you are injured. Proving
liability and damages is fine and necessary, but
insurance coverage is just as critical to a
successful outcome. So where does the money come
from? Initially, you can look to the defendant
drivers policy for coverage. However, in the event
that insurance is inadequate to compensate your
injury then what? Well then you can turn to your own
insurance policy under the uninsured/underinsured
provisions of the policy. That is why immediately
after an accident my office contacts not only the
defendant drivers insurance company but we also
contact the client's insurance company for the
declaration sheet which outlines our client's
coverage. We are looking for several pieces of
information. One is personal injury protection
coverage or PIP, the other is rental car coverage,
then collision coverage, and then un/uim coverage
(uninsured/underinsured coverage). And just to
mention there are a few things you need to know
about settlement and un/uim coverage. First before
you can even become eligible for the um/uim coverage
the defendant policy must be offered in total.
Secondly there is a notice requirement to your
insurance carrier before you can finalize the
settlement. Specifically, please review
§ 19-511.
Uninsured motorist coverage--settlement
procedures
(a)
if an injured person
receives a written offer from a motor vehicle
insurance liability insurer or that insurer's
authorized agent to settle a claim for bodily injury
or death, and the amount of the settlement offer, in
combination with any other settlements arising out
of the same occurrence, would exhaust the bodily
injury or death limits of the applicable
liability insurance policies, bonds, and securities,
the injured person shall send by certified mail,
to any insurer that provides uninsured motorist
coverage for the bodily injury or death, a copy of
the liability insurer's written settlement offer.
(b) Within 60 days after
receipt of the notice required under subsection (a)
of this section, the uninsured motorist insurer
shall send to the injured person:(1) written consent
to acceptance of the settlement offer and to the
execution of releases; or (2) written refusal to
consent to acceptance of the settlement offer. (c)
Within 30 days after a refusal to consent to
acceptance of a settlement offer under subsection
(b)(2) of this section, the uninsured motorist
insurer shall pay to the injured person the amount
of the settlement offer. (d) (1) payment as
described in subsection (c) of this section shall
preserve the uninsured motorist insurer's
subrogation rights against the liability insurer and
its insured. (2) Receipt by the injured person of
the payment described in subsection (c) of this
section shall constitute the assignment, up to the
amount of the payment, of any recovery on behalf of
the injured person that is subsequently paid from
the applicable liability insurance policies, bonds,
and securities. (e) The injured person may accept
the liability insurer's settlement offer and execute
releases in favor of the liability insurer and its
insured without prejudice to any claim the injured
person may have against the uninsured motorist
insurer:(1) on receipt of written consent to
acceptance of the settlement offer and to the
execution of releases; or (2) if the uninsured
motorist insurer has not met the requirements of
subsection (b) or subsection (c) of this section.
So WHAT ABOUT THE PASSENGER.
Suppose you are injured and you were a passenger in
the car. Assume there is not enough insurance to go
around and compensate everyone that was injured. And
just to mention this happens a lot particularly with
car pooling where you now have multiple people in a
single car. Well the good news is there is still
insurance coverage. As a passenger you can turn to
the defendant's policy, also you can turn to the
host vehicle um/uim policy and you can also turn to
your own automobile insurance policy under your um/uim
coverage.
19-513. Limitations on recovery of
benefits
(a) This section does not prohibit a nonprofit
health service plan or an authorized insurer, with
the approval of the Commissioner, from providing
medical, hospital, and disability benefits in
connection with motor vehicle accidents.
(b) Notwithstanding any other provision of this
subtitle, a person may not recover benefits under
the coverage described in §§ 19-504, 19-505, 19-509,
and 19-512 of this subtitle from more than one motor
vehicle liability insurance policy or insurer on a
duplicative or supplemental basis.
(c)(1) The insurer of a motor vehicle for which the
coverage described in § 19-505 of this subtitle is
in effect shall pay the benefits described in §
19-505 of this subtitle to an individual who is
injured in a motor vehicle accident:
(i) while occupying the insured motor vehicle;
or
(ii) by the insured motor vehicle as a
pedestrian, while in, on, or alighting from a
vehicle powered by animal or muscular power, or
while on or alighting from an animal.
(2) An insurer may not pay benefits under
paragraph (1) of this subsection to an
individual who is in violation of § 17-103 of
the Transportation Article.
(d)(1) The insurer under a policy that contains the
coverages described in §§ 19-505 and 19-509 of this
subtitle shall pay the benefits described in §§
19-505 and 19-509 to an individual insured under the
policy who is injured in a motor vehicle accident:
(i) while occupying a motor vehicle for which
the coverages described in §§ 19-505 and 19-509
of this subtitle are not in effect; or
(ii) by a motor vehicle for which the coverages
described in §§ 19-505 and 19-509 of this
subtitle are not in effect as a pedestrian,
while in, on, or alighting from a vehicle
powered by animal or muscular power, or while on
or alighting from an animal.
(2) Benefits payable under paragraph (1) of this
subsection shall be reduced to the extent of any
medical or disability benefits coverage that is:
(i) applicable to the motor vehicle for which
the coverages described in §§ 19-505 and 19-509
of this subtitle are not in effect; and
(ii) collectible from the insurer of that motor
vehicle.
(e) Benefits payable under the coverages described
in §§ 19-505 and 19- 509 of this subtitle shall be
reduced to the extent that the recipient has
recovered benefits under the workers' compensation
laws of a state or the federal government for which
the provider of the workers' compensation benefits
has not been reimbursed.
On this same point please review
Thomas SCHULER, et ux.v.ERIE INSURANCE EXCHANGE, et
al.
81
Md.App. 499, 568 A.2d 873
On August 8, 1986, appellant was standing beside
his 1983 Camaro when he
was
struck and was seriously injured by an
automobile driven by an uninsured motorist.
At the time he was injured, appellant's car was
insured by Maryland Automobile Insurance Fund (MAIF).
The limits of the MAIF policy were $20,000 per
person, $40,000 per accident. His wife is
currently the general manager for all of the
stores operated by Rainbow Hair Designers. Mrs.
Schuler's BMW was insured under the policy
issued by Erie to Rainbow, as a benefit of her
employment. The uninsured motorist limits of the
Erie policy are $100,000 per person, $300,000
per accident. Plainitff made his claim against
Erie rather than against MAIF, because of the
higher limits available under the Erie policy.
That he may make this election between the two
carriers is supported by the holding in
Rafferty v. Allstate Ins. Co., 303 Md. 63,
492 A.2d 290 (1985). By statute, a recovery from
one carrier precludes a recovery against the
other.
Erie contends, the claim is not covered by the Erie policy, because the
definitions section of the Erie policy
identifies the subscriber as the one who signs
the policy and the terms in the policy referring
to “you,” “your,” and “named insured,” refer to
the subscriber, cannot be interpreted to
include either the plaintiff or his wife. The
uninsured motorist coverage provided in the
policy, according to Erie, applies to
Plaintiff's spouse and other relatives resident
in his household, but does not extend to the
Plaintiff, who is the spouse of the owner of one
of the covered cars. Erie concedes that
the BMW is a covered vehicle and, as such, is
covered by its policy as are individuals
occupying the BMW or struck by it. Erie contends
that, inasmuch as the Plaintiff was injured
while standing outside of his own car, in an
occurrence not involving the BMW, no payments
are due Plaintiff from either the PIP or
uninsured motorist coverages provided by the
Erie policy.
