Insurance payouts occur when insurance companies pay for certain losses or expenses according to covered party’s plan. These are generally used in the context of certain personal injury claims. Most notably, auto accident settlements tend to involve insurance payouts, as most persons will have some sort of car insurance.
In most cases, the insurance company will specify the exact amount that they are willing to cover and will state this in an insurance contract. The terms are often based on the amount of payments the person makes each month. Insurance payouts are also used in the context of other types of legal issues such as life insurance and wrongful death claims.
What Are Some Legal Issues to Consider with Insurance Payouts?
Insurance payouts can often be the subject many different types of legal conflicts. Some legal issues to watch out for when dealing with insurance payouts include:
- Breach of contract (non-payment)
- Tax issues- obtaining the payouts all at once in a lump sum can have negative tax consequences
- Insurance fraud
Lastly, insurance companies often have a duty to settle in certain situations. Their duty is usually only limited to instances where the settlement amount is within the agreed-upon coverage. Any requests for settlements exceeding the contract amounts might require legal action to complete. In such cases, a separate filing may be needed apart from the original personal injury claim that gave rise to the insurance payout in the first part.
Do I Need a Lawyer for Help with Insurance Payout Issues?
Insurance payouts can vary from claim to claim. Also, laws on insurance and settlements can vary by state. You may wish to hire a personal injury lawyer if you need help with any insurance or personal injury issues. Your attorney can provide you with advice on how to proceed with a legal claim. Also, if you need to be involved in a lawsuit, your attorney can represent you in court as well.