Legal Question in Insurance Law in Maryland

Re: Payout limits

No. Your total recovery is supposed to make you whole -- to put you in the same position that you would have been had the accident not occurred. However, the concept of remedial justice notwithstanding, the policy limit is often the extent to which any assets exist to actually make a damages payment.

Re: Payout limits

No. There are 4 factors to look at as to maximum recovery, apart from what would be awarded by a jury: (1) the other driver(s) liability insurance; (2) your own uninsured/underinsured motorist coverage; (3) the defendant's personal assets and income; and (4) any state-imposed caps on recovery. In your case, the other driver has $100,000 coverage. If you have more (absent a waiver, your UM/UIM coverage matches your liability coverage), that would kick in after the other driver's liability limits are exhausted. If you recover more than the other side's policy limits, you can also recover directly from the other driver's personal assets and income. Maryland has a cap on non-economic damages of $300,000 (the last I checked - the amount may have changed), but there are no limits on recovery of medical expenses, lost income, etc. Note that a $100,000 recovery is generally considered pretty substantial - recoveries over that amount are rare.

Re: Payout limits

Due to past abuse, automobile insurance companies have been able to lobby for

legislation that restricts recovery. Anti-double dipping, caps, exclusions, limits, and a host

of other restrictions are now in place.

The automobile insurer is under no contractual obligation to pay beyond its policy limit. In fact, the automobile insurer faces a host of legal claims if they do not seek to pay the bare minimum to resolve each claim. A personal injury attorney

knows of these obligations as well as how to maximize your settlement recovery or litigation judgment/verdict.

This, however, does not stop you from underinsured coverage where you carry more than the limit of the wrongful or negligent driver. This would

be collected against your policy.

Moreover, you could collect from the other driver where assets, present and future earnings, business ownership interests, or other

investments are owned. Maryland has a cap on non-economic damages, last I recall it was about $320,000.

Often there may be coverage available under the provisions or langauge of a policy. Sometimes this language is not overly clear to a lawyman as to what is available. Insurance companies have seasoned adjusters and a staff of lawyers to represent their position, you should consider having an attorney to represent your position.

G. Joseph Holthaus III

(410) 799-9002