Legal Question in Insurance Law in California

I got in an accident when I was uninsured. I had just received my license at the time, and I was 3 months away from college so I didn't feel that I needed the insurance. It was my fault. After the girl and I exchanged numbers, we decided to settle it without getting insurance involved. However, when my parents couldn't come up with the funds, she called her agent and he harassed me for days. When I told him my financial situation, he promised to be sympathetic but began threatening me and my family about the money or getting the DMV to take away my license. The DMV had already suspended my license at that point, but he kept calling anyway. After my parents paid him in full on two credit cards, he asked for on two credit cards, he stopped calling. Two years letter, I received a letter demanding another $2,000 to the $2,000 already paid. The phone calls have started again. Are insurance companies allowed to press me for more money even after the case has been settled? Or do you think the insurance agent cheated me for my parents' money?


Asked on 3/28/10, 7:08 pm

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

A proper settlement agreement would have included language barring any further claims. I presume that there was no such agreement here. If I'm right, then the insurer is not barred from claiming additional damages. Having a lawyer draft the agreement would have prevented these problems.

You haven't said how long ago this happened. (We know two years passed between your parents' payment and the resumed demands, but we don't know how much time elapsed before or since.) The claim may be time-barred. There may be other viable defenses you and your parents can use. Without more information, though, I can't help you identify them or assess the strength of your case.

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Answered on 4/02/10, 7:32 pm
Steven Murray Steven W. Murray, APC

If your parents and you thought this was a settlement of all claims, then it is your side's word against the ins. agent. It seems that there was a full settlement. To whom did your parents make the payment? I don't think the insurance company ahs anything to do with this. Insurers don't use their agents to collect damages, they use their own or outside adjusters. Of course this is besides the time limits to collect for damages, two years from the injury for bodily injury and 3 years for property damage. Who was the letter from, the agent or the insurer? You can write the sender demanding a full accounting of all claimed damages and credits for payments.

Make sure you send a copy to the girl. Good luck.

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Answered on 4/19/10, 1:10 pm


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