We have all been there before. Your insured is injured and the at fault party is underinsured. The at fault party’s carrier offers policy limits but your company elects to front the limits and retain subrogation rights. The two-year bodily injury statute of limitations is approaching and your adjuster has not settled the insured’s claim. The question is, “What should I do?”

The Court found there was no contract as there was no acceptance of the offer to pay policy limits.

The answer is make sure the insured or you have filed a Complaint against the at fault party. Recently, an at fault party’s carrier avoided paying its promised limits due to the fact neither the insured party nor the insured carrier filed against the at fault party prior to the statute of limitation.

Instead of accepting the offer, the insured’s carrier decided to front the limits offered
by the at fault carrier and retain subrogation rights.

The insured’s carrier argued there was a contract between the carriers. The Court found there was no contract as there was no acceptance of the offer to pay policy limits. Instead of accepting the offer, the insured’s carrier decided to front the limits offered by the at fault carrier and retain subrogation rights. Also, there was no direct communication between the insured’s carrier and the at fault party’s carrier, all communication was through the insured’s attorney.

Next, there was an argument the at fault carrier was unjustly enriched by not having to pay its previously offered limit. Once again, the Court found this not a valid excuse for neither the insured nor his insurance carrier filing suit against the at fault party in a timely fashion. Make sure you are paying attention to the statute of limitation on all fronted limit claims. A Complaint must be filed in a timely manner by you or your insured against the at fault party, or else, you could be left holding an empty bag of recovery.

Make sure you are paying attention to the statute of limitation on all fronted limit claims.

Make sure you are paying attention to the statute of limitation on all fronted limit claims. A Complaint must be filed in a timely manner by you or your insured against the at fault party, or else, you could be left holding an empty bag of recovery.