Is my insurer entitled to a settlement that I received for my injuries?

Approximately 2 years ago I was in an auto accident; the other driver was found at fault. I suffered severe whiplash and a concussion. I have medical coverage and went through them for my medical needs. I paid all my co-pays and now they are seeking reimbursement from the settlement that I received 2 years ago. Can they do this?

Asked on February 24, 2012 under Personal Injury, California


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Some insurance carriers do require reimbursement.  If you had known that your insurance carrier required reimbursement, the settlement amount should not have been accepted unless it was sufficient to cover reimbursement and to still leave you with adequate compensation for your injuries.  It may be possible for you to negotiate with your insurance carrier and seek a reduction in the amount of the reimbursement.

If the settlement offers had been rejected, you could have sued the at-fault party for negligence, but since your case was settled, you won't be able to sue the at-fault party.  A settlement includes a release of the claim against the opposing party.

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