Archive for the ‘Insurance Coverage’ Category
Mahler Reduction
April 10th, 2009 | 
Author: Mahler is an important Washington State Supreme Court case concerning subrogation and attorney fees.
Normally an injury victim who recovers damages must reimburse their own insurance company for benefits the insurance company paid that are related to the injury, such as medical expenses, or other damages caused by the at fault party.
However, it is unfair for the injury victim’s insurance company to collect its money from the settlement generated by the efforts of the injury attorney and injury victim unless the insurance company helps pay the attorney fees. Otherwise the insurance company benefits from the settlement funds but does not contribute to the creation of the settlement. Read the rest of this entry »
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Subrogation and the Made Whole Rule
Insurance carriers typically have the right to be reimbursed under the insurance company’s right of subrogation when their insured recovers from an at fault party.
In Washington the injury victim must first be made whole before the injured person’s insurance company is entitled to be reimbursed. [1] This means that if an injury victim recovers less than full compensation for his injuries – such as when the at-fault party does not have enough insurance – the injured person’s insurance company does not get reimbursed.
This Washington rule does not apply to employee benefits paid under a plan covered by federal ERISA law or to certain other statues that create liens on the injury recovery.
This is not a substitute for legal advice. For advice about your situation speak to a personal injury attorney.
[1] Thiringer v. American Motors Ins., 91 Wn.2d 215, 588 P.2d 191 (1978).
