Expert: Doctor Settlement - 9/24/2006

Question
The Insurance company responsible for the accident is ready to settle my claim for the full amount based the insured person's coverage.  However they want me to sign a release in full of all claims.  Please send sample letter that only gives limited release of claims so that I can file my claim with my UIM carrier.  

Thanx.

Answer
Dear Marcell,

We are not allowed to practice law here, so we cannot send forms out from this site.

But you can get a general idea of what you have to do by reading Directory of Legal Information Liability Insurance Policy Limits Settlements in Personal Injury Insurance Injury Claims http://www.settlementcentral.com/page0451.htm

You will see from that list of requirements for a policy limits settlement, there is NO SUCH FORM AS YOU DESIRE.

The third party will NOT SETTLE unless it gets a full release.  Since your company's claim versus the tortfeasor is derivative from yours, it will be extinguished should you release the tortfeasor.  

Therefore, you CANNOT SIGN A FULL RELEASE without first having given your own UIM carrier adequate written notice and a chance to buy out the settlement.  Chances are that they will never do this, but still they can refuse to pay your UIM claim should you first release the tortfeasor.

Best wishes,

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