Legal Question in Insurance Law in California
Insurer sought to recover monies never paid - Bad Faith?
I was in an auto accident last year.I incurred car-rental expenses of approx. $1,150. While I was negotiating payment of the remaining balance with the other party�s insurer, my insurer submitted a subrogation demand for the full amount of rental expense even if they paid $500,which they asked me to pay.I had no prior knowledge of their intentions.Contrary to the other party�s presumption that I was trying to collect twice, my insurer was the one who falsely submitted such claim. I called my insurer for an explanation as to what prompted them to do that without even having the courtesy of notifying me, and why would they demand for monies that they never paid.The claims adjuster was evasive, but I firmly demanded a written explanation for their deceitful misrepresentation of facts. They made me look like a crook. My insurer explained that they were going to send me the check if they were able to collect. This just happened before the 4th of July. They maligned my credibility and reputation with the other party--my case is now in jeopardy due to their false and fraudulent misrepresentations. Does my insurer�s actions constitute bad faith?what are my rights?
1 Answer from Attorneys
Re: Insurer sought to recover monies never paid - Bad Faith?
BELOW COMMENTS ARE NOT PROVIDED AS A LEGAL ADVICE AND SHOULD NOT BE CONSTRUED AS SUCH. IT IS MERELY A RESPONSE TO AN INQUIRY WITHOUT COMPLETE REVIEW OF THE UNDERLYING FACTS AND WITHOUT ANY LEGAL RESEARCH.
If you have received any money whatsoever from your carrier, then they may attempt to go after the other party for subrogation. However, if they have not paid you at all for this loss, then their subrogation claim is baseless. You should be able to get a clarification onthis from your carrier.
From the facts you've stated it is difficult to conclude that your carrier acted in bad faith. As your adjuster told you, they would have given you the money. In any event, the other insurance company will not pay any claim without you releasing them first, meaning you have to sign a document before they would pay.
What seems to have happened here is another screw up by an insurance carrier, which they'll eventually correct. Good luck.
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