Lawsuit: Insurance Company Wrongfully Reduced Injury Settlement

An auto insurance class action lawsuit may be an option for individuals who were involved in an auto accident resulting in injury and whose insurance company wrongfully deducted money from the settlement of their bodily injury claims. Affected policyholders may be able to pursue a claim and recover compensation with the help of an insurance claim attorney.

For more information, contact the Attorney Group. We offer free, confidential, no obligation consultations. We can help answer your questions, and if you choose to pursue a case we can connect you with an affiliated auto insurance class action lawsuit attorney who can assist you throughout the legal process.

Important: The time you have to pursue a claim is limited. Contact us for more information.

Policyholders Seek Restitution in Made Whole Class Action Lawsuit

In an auto insurance class action lawsuit filed in July 2016, a policyholder claimed that her insurance company violated Arkansas law when it wrongfully deducted from her personal injury settlement payments that it had made on the policyholder’s behalf following her injury in an auto accident. Her claim, filed for herself and all others in the state who had been similarly wronged by the insurance company, seeks to recover all money that the insurance company deducted from her settlement.

Why Are Policyholders Filing Lawsuits?

Under Arkansas law, people injured in automobile accidents caused by the fault of another person may seek compensation for all damages caused by the accident, including medical expenses, lost wages and pain and suffering. When an injured party is fully compensated for his or her damages, that person is considered to be “made whole” under the law.

Separately, an injured person may in some instances receive payment from his or her insurance company for certain medical expenses incurred in the same accident, typically up to $5,000. This benefit, called medical payments coverage, is paid for by additional premiums added to the cost of the auto insurance policy, and is payable regardless of whether the policyholder was at fault for causing the accident. Many auto insurance policies require that medical payment benefits be reimbursed when the injured policyholder is able to recover damages from a third party.

However, under current Arkansas law, and regardless of the language of the auto insurance policy, the insurance company is not allowed to recover its medical payments until its policyholder had been “made whole” for his or her injuries in the claim against the at-fault party. It the responsibility of the insurance company to prove that the policyholder has been made whole.

When insurance companies disregard Arkansas law and wrongfully recover medical payments from their policyholders who have not been made whole, it results in the reduction of the policyholder’s injury settlement. Affected policyholders may be eligible to seek restitution from their insurance company for those wrongfully recovered payments, such as in the made whole class action lawsuit described above.

Do I Have a Claim?

You may be eligible to pursue an auto insurance class action if, in the last five years:

  • You were insured under an automobile insurance policy in Arkansas;
  • Your auto insurance company made Med Pay/PIP payment to a medical provider on your behalf for treatment of injuries you received in an automobile accident;
  • You settled a bodily injury claim with a responsible party as a result of the accident; and
  • Your auto insurance company took all or part of your settlement for repayment of the Med Pay/PIP it paid on your behalf.

Every case will be different, so if you think you have a claim speak with an auto insurance class action lawyer about your options.

The Time You Have to Pursue a Claim is Limited. Contact Us Today.

For more information, contact the Attorney Group. You can fill out the form on this page or contact us by phone or email.

After you contact us, an attorney will follow up to answer questions that you might have. There is no cost or obligation to speak with us, and any information you provide will be kept confidential.

Please note that the law limits the time you have to pursue a claim or file a lawsuit for an injury. If you think you have a case, you should not delay taking action.

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