Auto Insurance Claims: Policy Limits, UIM & Pre-Subrogation, insurance subrogation, subrogation claims

Question
Hello again Dr. Settlement,

Here are three questions presented as concisely as I can get them!

1.  If the at-fault policy has limits of $50,000 and my Underinsured Motorists is $100,000, do I understand correctly that $100,000 is the most that I will be able to collect?

2.  In settling for policy limits, will the release form contain a clause indicating that their insured cannot be sued for amounts beyond the policy limits?  To be honest, I have no intention of suing their insured, but I am just trying to understand precisely what settling for policy limits means.

3.  It's quite possible that due to my extensive medical bills that I will be settling before treatment is completed, because it looks like it's going to be a policy limits situation.  Can you offer any advice about negotiating an agreement with my health insurer similar to subrogation reduction but with the complication that this would be before-the-fact?

I have learned so much from your responses to other users and your website.  I am planning to join it when my husband gets paid again.  It looks as though it's comprehensive and contains the demand letter samples that I have not found in any other resource.  I appreciate that you are always so pleasant.

Sincerely,
Eleanore

Answer
Hello Eleanore,

1. Do not know, because it depends upon both your state and your policy.  For example, in Washington, you would have no deduction from the UIM limit.  Hence $100K would be correct.  But in other states, the UIM gets to offset the limits of the tortfeasor.  There you would have only $50K.  I would give a call to your insurance commissioner http://www.settlementcentral.com/links.php

2. Yes, the release is just that: you are releasing any and all claims, known and unknown.  That is why your insurers with subrogation claims and your UIM need to have sufficient prior notice before you release their derivative claims.  Insurance subrogation http://www.settlementcentral.com/page0459.htm

3. The health insurer has an obligation to take care of you.  Period.  If there is insurance that they can subrogate against, fine.  But you best learn how to defend subrogation claims and defend against anyone getting a dime in subrogation.  Then, once the UIM proceeds are paid out, that has no influence on the duty of your health insurer to pay your bills.  It is their continuing obligation.

4. Membership does bring a lot of additional information and examples and sample letters.  I will look for you over on the member's side, Eleanore.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com