Legal Question in Personal Injury in Rhode Island

Re: Personal Injury exceeding insurance limits

First of all, the information I am giving you is generic as I do not have the benefit of having fully reviewed your file. Therefore, please remember that your lawyer who is handling this claim for you is in the best position to give you advice.

In the state of Rhode Island the minimum liability insurance requirement is 25/50, 25K to an individual claimant and 50K maximum for more than one claimant. You have indicated that you did not carry uninsured/underinsured benefits.

Your question is whether you can proceed directly against the assets of the person who injured you, �the insured�. The short answer is yes, however in order to get the 25K from the insurance company they will require you to sign a release, which will prevent you from being able to pursue the insured after payment of the 25K. Therefore in order to collect the 25K and preserve your right to proceed directly against the insured, you would have to file a lawsuit.

If you do file suit against the insured, you will not be able to get a judgment against the house unless there is more than $300,000.00 of equity that means an outstanding mortgage of less than $100,000.00 on a $400,000.00 house. The $300,000.00 Homestead estate exemption is per RI law, specifically � 9-26-4.1.

In addition the insured�s other personal assets are also exempt pursuant to �9-26-4, entitled �Property exempt from attachment� specific exemptions that would apply to your case area s follows:

(3) The household furniture, clothing, and family stores of a housekeeper in the whole, including beds and bedding, not exceeding in value the sum of eight thousand six hundred dollars ($8,600).

(13) Any and all motor vehicles owned by the debtor not to exceed an aggregate total of ten thousand dollars ($10,000).

(14) Any and all jewelry owned by the debtor not to exceed an aggregate total of one thousand dollars ($1,000).

I would tend to agree with your lawyer that if there is less than $25,000.00 in personal assets, preferably a non-exempt bank account, a lawsuit may just be a waste of time and what little money you will receive.

As far as the 25K, you can certainly contact all medical providers and try to make a deal with them to pay less than the full amount by explaining the unfortunate circumstances of the case.