Expert: Claims Guy - 6/25/2011

Question
I am in the middle of settling a claim with a total of 3 claimants the insurance company has extended their global policy limits offer of $60,000 with no one person receiving more than $30,000.
I was told to contact the other claimants attorneys to decide how to distribute the money.

After numerous failed attempt to talk to the attorneys and being told by one that he does not wont to talk with me because I am not represented. I contacted the adjuster again to see if they could make a suggestion on how to distribute the money she said that she could not make any suggestions on record but told me that the other claimants should divide $30,000 since the total of there medical bills were less than that and that the other $30,000 should go to me since my medicals were over that amount. I asked how come they could not divide it up like that themselves instead of making the claimants do it she said if they did that it would leave them open for a lawsuit.After speaking to her I wrote a letter demanding the insurance per-person policy limit of $30,000 be given to me or I would file an excess judgment claim against their client. When I spoke to the adjuster after she received the demand letter she said that I could not because they have already extended their $60,000.

Now a couple of questions.

Since they have extended the policy limits to be divided can no one file a law suit against them?

Do we now have till pass the statue of limitations to distribute the funds between us?

What if all claimants can not agree on the distribution of the money will the insurance company ultimately have to or can we go to mediation?

Can I file a bad faith claim against the insurance since they refuse to distribute the money how they see fit ?

Answer
Since they have extended the policy limits to be divided can no one file a law suit against them?
Anyone can file a lawsuit whenever they wish.  Winning is a differnt matter.


Do we now have till pass the statue of limitations to distribute the funds between us?
I doubt it unless there is something unusual in Nevada law.  If you don't receive the money by the statute date, I would be sure to file a lawsuit.  Unless you receive legal advice to the contrary.

What if all claimants can not agree on the distribution of the money will the insurance company ultimately have to or can we go to mediation?

Mediation typically only occurs when there is a lawsuit, and only parties to the suit are involved.  It sounds like this is heading to a lawsuit.

Can I file a bad faith claim against the insurance since they refuse to distribute the money how they see fit ?
You can but I doubt you would win.  I know you are in a tough spot, but you must consider their responsibilities.  Their main one is to protect their insured.  If they give you the $30k now, and the other 2 attorneys file suit, they might very well get an excess verdict against the insured.  The best scenario for the insured and the insurer is for you 3 to agree on a fair split.  It is a shame the other attorneys are being unreasonable.

Here's a couple ideas that may or may not work:
-file complaint with the bar association against the attorneys who won't speak to you.
-file complaint against the insurer with the state insurance dept.
This might spur some activity or it might not.  Your only cost will be the time writing the letters.

You may need to hire an attorney to sue their insured.  But the attorney will charge between 25-50%, most around 33%.  This is way too high of a fee for the small amount of work they'll probably do, since the case will most likely settle before trial.  So I'd avoid this if possible.  But make sure you file a lawsuit before the statute runs.  If it gets to that point, you probably will need an attorney to protect your interests.

One other issue - does the insured have any assets?  If yes, a lawsuit might be worthwhile if you can get an excess verdict and take the assets.  Good luck....