Legal Question in Insurance Law in California

Releasing Policy Limits

Hi there!

I was involved in an accident with a motorcyclist, and was found to be 100% at fault by my insurance company. The motorcyclist suffered a broken leg in the accident. He has retained a lawyer, and I've gotten a letter from my insurance company asking me to release my policy limits and another letter stating that the motorcyclist is asking for more than my insurance policy covers. What does all this mean? Should I release my limits? I'm guessing that he's going to personally sue me for the difference.

Thanks in advance!


Asked on 11/14/08, 3:39 am

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Releasing Policy Limits

Provide all of the information to your insurance carrier. Let it worry about getting the case settled within your policy limits which it probably will do.

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Answered on 11/14/08, 10:44 pm
Steven Murray Steven W. Murray, APC

Re: Releasing Policy Limits

There is an insurance privacy law, so the injured person doesn't know what your policy limits are. He asked the insurer and it needs your consent to do so.

There is nothing wrong with letting the plaintiff know your limits, in fact that may enable the insurer to settle within the limits.

Did your insurer send you a copy of the plaintiff's excess limits demand?

Depending on how serious the injuries are, it may be necessary for you to get a lawyer who knows personal injury or insurance law, and can try and force your insurer to settle to protect you. If the damages are very serious and if you have assets which an asset search can find out about, getting your own lawyer is mandatory.

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Answered on 11/15/08, 5:03 pm


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