Legal Question in Civil Litigation in California

Re: How long does an insurance co. have to pay after an out of court settlement?

If you filed suit in Small Claims court, and you have already returned a signed release to the insurance company, than you would sue the insurance company for bad faith. Hopefully, this will get the insurance company to pay you your money. If it doesn't, go to Court. Tell the Judge how long you have waited for this money and that you don't think they intend to pay it to you. If you haven't returned a signed release than you need to sue the driver. You need to file a lawsuit against the driver before the statute of limitations expires. The statute of limitations expires one year from the date of the accident.

Do you have written confirmation that the limits were $10,000? The minimum limit on an insurance policy in California is $15,000. This is the amount you must have by law. If you settled based on the insurance companies assertion that the policy limits were $10,000, and they are actually higher, you may have a case for bad faith. If this is true, you can sue for punitive damages. If you need any additional information please contact my office by phone, toll free at 877-546-9918, or by email at [email protected].

I wish you the best of luck in resolving this matter.

Sincerely,

John Hayes, Esq.