Legal Question in Insurance Law in California
Restitution awarded in excess of insurance claim
I have an employee who was criminally convicted of embezzlement of $500,000. She was ordered to pay full restitution. I filed an insurance claim for $450,000 of which I recieved the maximum amount of $300,000. The difference of $50,000 that I recieved in court was for things that were not covered by insurance. The insurance company is saying they want their money first through restitution, but I think I should get the $50,000 first. What do you think?
3 Answers from Attorneys
Re: Restitution awarded in excess of insurance claim
From the facts you describe, you are entitled to satisfaction of your loss first, and then the insurance company is entitled to the difference. If you would like to discuss your situation further, please do not hesitate to contact me.
Yours truly,
Bryan
Re: Restitution awarded in excess of insurance claim
California has a "make whole" rule which generally allows the insured to recover all losses first prior to the insurer recovering anything. This can include costs and attorney's fees, depending on the exact facts and circumstances. You should contact a lawyer who knows about this area before you begin dealing with the insurer.
Re: Restitution awarded in excess of insurance claim
If the insurance paid $300,000 and the loss was $500,000 you should be paid in full prior to the insurance company recovering their money. This may be enough of a difference that you want to hire competent counsel to assist you.