Auto Accidents Newsletters

Arbitration for Motor Vehicle Insurance Disputes

Arbitration (which is sometimes referred to as a type of Alternative Dispute Resolution, or ADR) is a procedure in which the parties to a dispute, for example, parties who disagree about some aspect of a motor vehicle insurance policy, voluntarily submit the issues they are unable to agree upon to the judgment of one or more disinterested persons, called arbitrators, and agree to abide by the judgment of the arbitrators, which is called an award. One significant thing to note about arbitration is that it takes place outside the court system and so can be conducted less formally and with less expense than a traditional judicial proceeding.

Design Defects in Automotive Products Liability Cases

The basic elements of proof that a plaintiff in a products liability action against the manufacturer or seller of a car or truck has to establish are that the vehicle as sold contained a defect that created an unreasonable risk of death, personal injury, or property damage when the vehicle was used for its intended purpose and that the defect caused an accident or similar incident, such as a vehicle fire, that resulted in the loss for which the plaintiff is seeking to recover damages. Allegations of product defect in automotive products liability cases include inadequacies in vehicle design, errors in the manufacture of vehicle parts and their assembly into a completed car or truck, and failure to warn users of a vehicle about dangers inherent in its use.

Intentional Injury Exclusion in Auto Insurance

When a vehicle is involved in an automobile accident, the conduct of an insured may activate the automobile insurance policy's exclusion for intentional injury. Intentional injuries include suicide and assault, among other acts. Even though some states require automobile insurance companies to provide statutory minimum coverage, the companies may exclude coverage for intentional injuries. The intentional injury exclusion prohibits an insured, which caused an intentional injury to himself or herself or to another person, from recovering insurance benefits for that injury. This is a common exclusion in automobile insurance policies. Further, most no-fault statutes contain intentional injury exclusions.

Motor Vehicle Insurer's Right to Reimbursement of Indemnity Payments

The obligations of insurers to make payments under policies of motor vehicle insurance are based on the sometimes uncertain answers to questions about the extent of coverage and the liability of an insured to a party making a claim under the policy. An insurer may therefore face a difficult decision as to whether to make a payment in response to a third party's demand for such payment under a policy, risking the possibility that the payment is uncalled for in light of some limitation in the coverage, or to deny such a request and risk a claim that the insurer's failure to make the requested payment has made it liable to an insured for additional damages, such as the amount of a judgment in excess of the policy limits.

Per-Person Liability for Auto-Insurance

Insurance companies can limit liability in automobile insurance policies by setting a per person limitation on the amount of benefits that will be paid under the policy for bodily injury to or the death of one person per accident. Whether the limitation is stated as person or each person makes no difference. Such limitations on liability are necessary. Without them, an insurance company could be at risk for more than the funds that it has to pay its claims. The insured pays a certain amount, called a premium, based in part upon the policy limits.