| Setoff Provisions in No-fault Insurance Policies |
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| When an insured files a lawsuit against an insurance company, the insurance company can file a counter claim against the insured to reduce the amount of the insured's claim by an amount that the insurance company claims that the insured owes to it. The amount owed can be unpaid premiums or funds received by the insured from other sources that would exceed the amount of the insured's loss. This is called a setoff, an offset provision, or a benefit-set off provision. In the case of no-fault insurance, setoffs exist for a number of benefits that an insured could obtain due to an automobile accident. More... |
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| Insurer's Duty to Defend |
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| Under an insurance policy, an insurance company has two principal obligations. One of those obligations is the insurance company's duty to defend the insured in the event of a claim within the policy's coverage. The insurance company's duty to defend is triggered when the insured gives the insurance company notice of the claim or lawsuit against the insured. The duty to defend an insured is controlled by statute and common law. More... |
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| Liability of Non-Manufacturing Seller in Automotive Products Liability Cases |
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| A plaintiff in an automotive products liability case against the manufacturer or seller of a motor vehicle generally has to prove that the vehicle at the time of sale contained a defect that created an unreasonable risk of death, personal injury, or property damage when the vehicle was used for its intended purpose and that the defect caused an accident or similar incident, such as a vehicle fire, that resulted in the damage or loss for which the plaintiff seeks to recover damages. Under traditional legal principles, any party involved in the chain of transactions leading up to the retail sale of the vehicle, including the dealer who sold the car or truck, could be held liable in such a case. Motor vehicle dealers, like any party against whom a legal action is brought, would like to limit their potential liability to matters for which they can be shown to have a direct and undeniable responsibility. More... |
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| Named Driver Exclusions in Auto Insurance |
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| Because motor vehicles are often operated by residents of a named insured's household other than the insured himself or herself, the driving records of such household members may create difficulties for the insured in obtaining auto insurance coverage for a car or truck. Named driver exclusions in motor vehicle insurance policies have been devised as a means of resolving this difficulty. More... |
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| Punitive Damages in Automotive Products Liability Actions |
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| A plaintiff in an automotive products liability action is generally required to prove that a motor vehicle as sold contained a defect in its design, in the way in which it was manufactured or assembled, or in the failure to warn of a risk inherent in its operation that created an unreasonable risk of death, personal injury, or property damage when the vehicle was used for its intended purpose and that the defect caused an accident or similar incident, such as a vehicle fire, that resulted in the loss or damage for which the plaintiff seeks to recover damages. Because proof of the existence of such conditions does not involve passing judgment on the conduct of the manufacturer, but merely on the status of the vehicle as sold, the plaintiff in such a case can ordinarily recover only his or her actual damages, which can include economic losses and damages for non-economic losses based on the jury's determination of the dollar value of the pain and suffering resulting from the accident. Sometimes, though, the manufacturer's conduct in dealing with the alleged vehicle defect becomes an issue in the case, and the plaintiff may then attempt to recover punitive damages in addition to the actual damages suffered. More... |
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