Legal Question in Insurance Law in North Carolina

Re: Property Damage Claim Settlement question

That's a good question. I really do not understand the underlying situation (i.e. why an insurer is making payment under a collision policy in connection with a rental car; I could better understand a liability payment, but I'll let that lie...) Anyway, as a general matter, I do not see why you did not have a binding oral agreement to settle. This would be a fundamental contracts issue, involving an offer, acceptance, "consideration." One of my main concerns would be whether the agreement was sufficiently specific (i.e. whether the principal terms were understood and agreed upon), but it sounds as if they were. The lesser issue is whether this agent had the authority to settle the claim, but it sounds as if he did (actual or apparent). I will add that I have never seen such a dispute (whether an oral agreement is binding). The simplest solution would be to simply wait to see if the insurer keeps its end of the bargain. If not, then you can consider your other options. As for bad faith, that too is a good question. I will note that in most instances, unless you are working with your own insurer (i.e. the rental comany's insurer I suppose), your claim is a "third party claim," and in NC you do not have a bad faith claim (yet anyway).