Legal Question in Insurance Law in California

Statute of Limitations

I opened an automobile insurance claim over 3 years ago that was finally settled in April of 2004. The other party in the collision was at fault. There was no medical exam requested by a third party yet in the insurance adjusters opinion the medical treatment expenses went over what she thought to be necessary. The adjuster approved $2800 of the doctor bills. In my doctor's opinion I needed care that exceeded my $5000.00 medical coverage as a result of the claim. Some money came out of my pocket. I received a bodily injury settlement that covered lost wages and pain and suffering. In my opinion it did not cover half of what I feel I deserved. Now I have the subrogation department from the insurance company ( I was insured by the same company that the at fault driver was insured by) contacting me to collect the portion of the bill that was not approved by the insurance adjuster. The 2 year statute of limitations has now passed. What is the statute of limitations on the subrogation of an insurance claim? If I get sent to collections, how can I fight this so that it does not show negatively on my credit report?


Asked on 6/20/05, 5:53 pm

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

Re: Statute of Limitations

It sounds like a hornets' nest. Imagine that an insurance company can low-ball your claim, and then come after you for the rest that it paid to the doctor. Doesn't sound right to me. Why did it pay the doctor in the first place if it didn't think the medical bills were reasonable? I think their payment of the doctor in the first place is a waiver of any further claim for their own subrogation.

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Answered on 6/21/05, 3:29 pm
Steven Murray Steven W. Murray, APC

Re: Statute of Limitations

You need to contact an insurance lawyer. The general rule is that an insurer cannot subrogate agaisnt its own insured. Your description of what happened is confusing, since the insurer paid under your medical payments coverage and would then seek to get reimbursement from the third party at fault, not from you. Subrogation is allowed within two years from payment, but the inherent conflict of interest in having the same insurer on both sides may be your trump card. A lawyer will know what to do.

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Answered on 6/21/05, 7:49 pm


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