What is a “policy limits tender”?
A “policy limits tender” means that the insurance company for the at-fault driver is offering the injured person or injured persons the full amount of the coverage for which the at-fault driver had contracted with that carrier before the wreck. It may or may not be enough money to compensate those injured for their pain and suffering. Bodily injury minimum limits in this state is $25,000 per person and $50,000 per incident. That means that the most that insurer would have to pay, regardless of the extent of injury, is $25,000 to any single individual but never more than $50,000 to all injured persons combined. So, if only 2 people are hurt as a result of the at-fault driver’s negligence then each would be entitled to the value of their injuries but only up to
$25,000 each, if that is the extent of the available coverage. If 3 people or more are hurt as a result of the at-fault driver’s negligence then each of them is entitled to the value of his or her claim so long as no individual receives more than $25,000 and so long as all individuals together receive no more than $50,000.
For this reason, it may be necessary for multiple injured persons to have separate attorneys or, at least, to acknowledge that they understand that this conflict could potentially arise. It is important to retain an attorney as early as possible, especially when there are multiple injured persons. Your attorney can help assure that your claim receives full consideration when the insurance proceeds are divided and that your total recovery is as complete as possible. Your attorney can help you to identify other sources of recovery which may include, but are not limited to: vicarious liability, product liability, workers compensation, medical malpractice, underinsured motorist coverage, uninsured motorist coverage, added reparations benefits and insurer bad faith. Given the specific circumstances of your injury event and its aftermath, there may be other sources of recovery or valid claims that need to be made on your behalf. It is important to retain an attorney as early as possible so that your attorney has the opportunity to investigate all potential avenues of recovery for you.
Popularity: 1% [?]
