Insurance 101 – Chapter 14 – Volume 24 – Multiple Claims

Multiple Claims

In multiple-claim situations, such as a multi-vehicle freeway accident with some very serious bodily injury claims, there is a risk that policy limits could be exhausted before all the claims become known. The insurer should avoid exhausting its limits early unless it  can avoid all exposures faced by the insured. The defense costs saved could result in serious punitive damages. The duty of good faith requires consideration of the interests of the insured over those of the insurer. If the limits are low, exhausting the limits with one claimant may expose the insured to defense costs and excessive judgments beyond the limit.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

Legal Disclaimer

The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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