| "Escape Clauses" in Automobile Insurance Policies |
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| An automobile insurance policy may have a provision for "other insurance." When more than one insurance policy provides coverage for a loss, the "other insurance" clause can limit an insurance company's liability by defining the priority in which the policy should pay an insured's claim. There are three types of "other insurance" clauses: (1) pro rata; (2) excess; and (3) escape. More... |
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| Automobile Fire Insurance |
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| While the popular impression of the flammability of motor vehicles may be exaggerated due to such things as the manner in which they are portrayed on television and in the movies, cars and trucks do contain flammable materials, and they obtain their motive power through the use of flammable fuel. As a result they occasionally catch fire, causing damage to themselves and to objects around them. Fire coverage under policies of motor vehicle insurance has been devised in order to reimburse vehicle owners for the loss and damage sustained in such incidents. More... |
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| Drunk Driving Exclusion in Automobile Insurance Policies |
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| Drunk driving or driving while under the influence of alcohol or a controlled substance is illegal. Public policy does not permit a criminal to profit from a criminal act. Commonly, insurance companies include a clause in their automobile insurance policies that prohibit an insured from receiving damages for bodily injuries or death that occurred in an automobile accident caused by drunk driving. A drunk driving exclusion can be a separate clause in the policy or drunk driving could be excluded under the policy's crime exclusion. More... |
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| Mediation of Coverage Disputes: Uninsured and Underinsured Motorist Insurance |
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| Mediation is a form of alternative dispute resolution that can be used by an insurance company and an insured to settle a dispute between themselves regarding uninsured or underinsured motorist coverage as well as other disputes. The alternative to mediation would be a lawsuit. In mediation, a third person, who has experience with insurance disputes, meets with the insurance company and the insured to try to work out a solution on which both parties can agree. More... |
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| Settlement Obligations under Automobile Insurance Policies |
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| An automobile insurance policy can contain a clause that requires an insured to obtain the consent of the insurance company before settling a lawsuit with an uninsured motorist. Some states require the consent-to-settle clause by statute. In the absence of a statutory requirement, many courts have upheld consent-to-settle clauses. Those states that do not enforce such clauses often cite public policy. They fear that an insurance company will be able to avoid paying its share of uninsured motorist coverage by failing to consent to a settlement. Other courts find that such clauses can reduce settlements by creating another step for the insured take. More... |
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