QuestionI was involved in a rear end accident on June 24, 2006, and I am at least 51% at fault. This accident was a rear end accident during stop and go traffic in Oakland, CA. I thought this was a minor accident, and the other party was eager to leave, and did not require an ambulance, so we both made out claims to our adjusters, and I thought that was it.
May 8, 2008 I get a letter from my insurance company (Allied a Nationwide company, and the other party's insurance is Farmers) asking me and my parents to sign an insurance/asset declaration. I was 21 at the time of the accident, however I am under my parents insurance.
Here is what the declaration states:
1. On June 24, 2006, I was the driver o fa 2005 Toyota, and was involved in a motor vehicle accident with the plaintiff. At the time of the accident, I was not driving my vehicle within the course and scope of my employment.
2. I understand that the plaintiff is making a claim against me for damages including, but not limited to, medical expenses- both past and future, lost earnings and pain and suffering. I further understand that if I were found to be liable for said accident in a judicial proceeding and a verdict or judgment were entered against me, my maximum $25,000 liability insurance coverage through Allied Insurance Company would not cover all of her damages.
3. On June 24, 2006, I did not have in effect any umbrella liability insurance, excess insurance coverage or any other liability policy (ies) that would possibly cover the Plaintiff's losses from said accident.
4. I do not have any equity in real property that is in excess of homestead protection, either individually or jointly with anyone else; and do not have any substantial savings and/or other assets that would possibly cover the Plaintiff's losses from the above-referenced accident in addition to the maximum $25,000 liability coverage that has been tendered to the Paintiff herein.
5) I understand that the Plaintiff and her attorney are relying on all of the representations I have made in this declaration.
6) I further understand that but-for my above stated representations, the plaintiff would not accept the maximum $25,00 liability coverage that has been tendered herein. This declaration is being made to induce the plaintiff to enter into an agreement to settle for $25,000 all of her claims against me arising from the June 24,2006 accident. Should any representation made herein prove to be inaccurate, the plaintiff has the right to rescind the settlement; and will retain all of her legal rights and remedies under California law.
I declare under penalty of perjury the foregoing is true and correct.
On May 15, I signed and faxed this declaration to my insurance company because they said if I sign it, then the case would be settled, I felt very uneasy, because this document felt like I was signing my life away, especially with the language used. My parents however, did not sign.
May 19, the adjuster calls and said that the other lawyer still wants my parents to sign, and that they plan on making an underinsured claim. This is because the other party requires surgery which cost about $40,000.
I am weary of asking my parents to sign, because they own a home (still making mortgage payments), and have savings for retirement.
Please help. Thank you so much. I truly and deeply appreciate it.
AnswerHi Mary,
Your signing the asset declaration presents no problem because you were honest about your assets.
Under California law, the owner of the car bears financial responsibility for amounts in excess of policy limits.
You need to discuss this document with your parents TODAY. They need to take the declaration and immediately talk to a qualified attorney concerning the accident and their assets. He can advise them what they can legally protect and what they stand to lose. It's possible that their attachable assets are to large for them to sign the declaration. The California homestead act only protects $125,000 of their equity in the home.
I can't stress urgency of this matter.
If a response is not made to your insurance company in a week, you can expect the injured party to file a lawsuit against you and your parents.
I reside within 25 miles of you. If you will send a PRIVATE follow up with your home telephone number, I will call you after 9 PM tonight.
I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
