Legal Question in Insurance Law in Florida

Re: Lien due to insurance company error

Whoever gave you that advice was almost certainly wrong. I am not sure what you mean by "the unit above" however.

There is a common pisception that the third party or the insurance company is responsible for payment of a lien. WRONG. Liens almost always attach to the recovery -- your recovery -- and you are responsible for its satisfaction. That is one of the valuable services of a lawyer when you bring a claim.

Liens can be created without you hiring the person. When the ambulance arrives and takes you to the hospital before you die at the scene, for instance, the lien for their services attaches as a matter of law. Many hospitals havethe same right. Liens from payment of health care bills by your insurance company are created by your contract with the company.

Often when people settle claims on their own they are led to believe that either the lien need not be paid or that someone else will be responsible for it. That usually produces a settlement that is too small to satisfy the liens and then leave a fair amount for the injured.