Expert: Anne - 12/3/2009

Question
Hi.  I was in an auto accident in April of this year.  I used my Med Pay insurance to cover my medical expenses.  I have State Farm.  The guy who hit me had Erie Insurance.  According to MD law, if I have Med Pay, then I am not obligated to pay the medical payments back at settlement.  My accident happened in Md, but I live in WV and thats where the policy was written.  Now, State Farm is saying that this is a subrogated claim and they want their $7200 in medical payments back out of my settlement.  What law prevails here?  would it be Maryland which states that since I have Med Pay I don't need to pay it back?  If I had PIP coverage, then I would have to pay it back, however, in the state of Md.

Answer
Hello Sheila,

This is a very complex question. Jurisdictional issues between states need to be analyzed under the eye of case law. A lawyer will have to help you with that.

You have a policy that was written in your state, for a vehicle that is garaged there. It is very likely that the insurance company will argue that. You are bound by the terms of the policy as this would be a dispute between you and your own insurance carrier.

However, your argument is also strong. The accident happened in a jurisdiction where subrogation did not exist, thus, you might be entitled to keep this money.

Talk to a local attorney and get their take. Some will give you a free hour consultation. They might also help you settle the matter so you only have to give a partial amount instead of fighting with expensive lawyers.

I hope this helps,
Good Luck,

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