Six Steps to Finalizing UIM Settlement with the Liability Carrier
- Plaintiff’s lawyer accepts the liability carrier’s available policy limits offer;
- The plaintiff signs the liability release;
- The plaintiff’s lawyer sends the signed liability release to the liability carrier, which contains the statutory “Notice to Released Party” paragraph described in new subsection (L) of §38.2-2206;
- The liability adjuster or defense counsel explains the release to the defendant, especially the “Notice to Released Party”;
- The defendant also signs the release signed by the plaintiff and initials the “Notice to Released Party”;
- The final act: the liability carrier sends payment to the plaintiff’s lawyer of its available policy limits . . . the “magic moment” has arrived.
The defendant is now released completely from any claims of the plaintiff. The liability carrier now owes the defendant no further duties, including the duty to defend, and now the UIM carrier’s subrogation and consent to settle rights are eliminated.
This notice to the defendant explains that by consenting to the settlement with the plaintiff, the defendant is receiving a full release from the plaintiff and that no judgment can ever be entered against him by the plaintiff as a result of this motor vehicle collision. And, if the defendant reasonably cooperates with the UIM carrier, it has no right of subrogation against the defendant. However, if the defendant fails to reasonably cooperate with the UIM carrier in its defense of the case, its subrogation rights are revived against the defendant.Free Consultation with Gerald Schwartz
Personal injury attorney Gerald Schwartz is considered an expert on Underinsured Motorist (UIM) coverage. He is often asked to teach other lawyers how to maximize an injured client’s recovery.
If you need help with an Underinsured Motorist (UIM) coverage claim, call 1-800-423-0055 to speak with Gerald Schwartz.