March 2008, Volume 15

Let’s reset the clock!

Brian Rosenhall was injured in a rear end collision. He was not at fault and his injuries reduced his future earning capacity by almost $1,000,000. Unfortunately, the driver who injured him had auto liability limits of only $100,000 and after nearly four years the case was settled for $85,000.

At that point, Brian looked to State Farm, his auto insurance carrier, to make up the difference using his Underinsured Motorists Coverage. State Farm denied the claim because it was submitted more than four years after the accident and was past the statutory time limitation in which to submit a claim. In the ensuing lawsuit, Brian argued that the time limitation does not begin until after a settlement determining damages has been reached, since such claims cannot realistically be made until then. He wanted the statutory time limitation clock reset to reflect the date of the settlement, not the date of the accident.

The court agreed with Brian and reset the clock.

Click here for more details on this court case.

How does Underinsured Motorists coverage work?

Perhaps Brian understood his coverage because he was an attorney. Do your customers understand what underinsured motorists coverage really does for them? While this coverage varies by state, PP 03 11–Underinsured Motorists Coverage includes most of the standard features.

Click here to review the PF&M Personal Auto Section
that discusses the Underinsured Motorists Coverage Endorsement.

Is your customer aware of the standard Personal Auto coverages?

Your website can be a valuable source of information for your customers. Have you considered providing a very basic primer on Personal Auto coverages? E-marketing for Agencies is a great tool for keeping your site fresh and up-to-date.

Click here for an e-marketing article that discusses personal lines coverages.

Do you know the uninsured and underinsured motorists requirements for your neighboring states?

Uninsured and underinsured requirements vary by state. If any of your customers have vehicles registered in another state, they might be required to carry coverage and limits not currently provided.

Click here to review the state-by-state uninsured and underinsured motorists requirements.

Updates

PF&M has expanded into Alternative Markets! Please check out our new sections on:

Alternative Risk Transfer Risk Management
Captive Insurers Capital Markets
Securitization Finite Risk Reinsurance
Convergence Products Double Trigger Contracts
Feedback

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

 
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