Can an insurance co. claim money from a settlement for monies which they never even paid out?
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Can an insurance co. claim money from a settlement for monies which they never even paid out?
I received a settlement for a personal injury case in which I was injured. During the years this settlement took I never received any wages from the insurance company. Now they want the $50,000 that my policy offers to pay but which they did not.
Asked on May 5, 2009 under Accident Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Something about this posting makes no sense.
While there in no way an insurance company who never paid you anything, or bore any expenses on your account has a claim, IF the insurance company paid your medical bills, or disability benefits, it very well may have a claim!
Presumably the settlement you received included medical expenses and lost wages. If someone else already had paid for your medical bills or lost wages, in essence the settlement would see you paid for something you did not expend (the bills) or lose (the wages). Most health policies give the insurer a claim against any recovery you receive for the medical and hospital bills, and some group plans may give the insurer a right of recovery for disability benefits.
If you had a lawyer representing you, the potential claims of insurers that paid your expenses and salary should have been discussed with you by your lawyer and dealt with in the context of the settlement. Usually they settle them out for a modest fraction of what they paid out, as it cost you lawyer fees to collect them on their behalf. If the lawyer did not tell you that it may have been lawyer malpractice.
Go to your lawyer and discuss the situation with him/her. If you handled the case on your own, without a lawyer, you now know how a lawyer can help.
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