Legal Question in Insurance Law in Washington

Re: settelment terms

First, the answer to your question, as to the meaning of the term 'new money,' depends on the context within which it is used. When the subject comes up, it's usually best to make sure it's defined for you by the person trying to use it.

In settling personal injury cases, the term usually comes up in the sense that the liability insurer is settling with the injured party for some sum of money, in addition to paying for the medical bills, or repaying another insurer or health carrier who has paid the medical bills. It could be in addition to other benefits already paid or yet to be paid. But sometimes, I've also seen it used where the person is getting settlement money in addtion to the liability insurer reimbursing the insurer that paid the medical bills, but where the person settling still had to pay off the unpaid medical bills themselves, out of their settlement

So again, to know what the term means in YOUR situation, you really need to make the person clarify exactly what they mean by "new money," and you may wish to have the insurer put the meaning in writing. And, more to the point, where does (or did) the OTHER money go to? That is, the money that's NOT "new money."

You may wish to have the matter reviewed by any good personal injury attorney, to be sure you're getting a reasonable deal.

Good luck! -- Sam