D. Insurance Law

Question 1

What is required for recovery of compensation in automobile accidents?*

Answer 1

1) Vehicle Owner’s policy of liability insurance

2) Pay ‘first-party benefits’ to persons injured (NOT occupants of other vehicle);
- [Reimbursements for basic economic loss] MINUS
- [20% of lost earnings and amounts paid under state/federal law (disability/workers’ compensation benefits)]

3) Vehicle use ‘proximately’ caused injury

NO fault/negligence required

Question 2

What may be recovered as compensation in automobile accidents?*

Answer 2

Basic economic loss => Max. $50,000 per person including;

• Necessary medical expenses (need for services ascertainable) (within 1 year since accident)
• Loss of earnings (max. $2,000 per month) (within 3 years since accident)
• Reasonable necessary expenses (max. $25 per day) (within 1 year since accident)
• Other expenses (housekeeping/transportation)

Question 3

Who can Insurer exclude from his insurance policy?*

Answer 3

P intentionally caused own injury

P intoxicated

P impaired by illegal drug

P injured during felony

P driving vehicle in speed contest

P driving ‘knowingly’ stolen vehicle

P seeking to avoid lawful arrest

Question 4

What may ‘Covered person’ recover from ‘Covered person’ for personal injuries in negligent use of vehicles?*

Answer 4

Economic loss
- If [Economic Loss > Basic economic loss] => Covered Person may recover excess from Tortfeasor

Non-economic loss (Serious injury);

• Death
• Dismemberment
• Significant disfigurement
• Bone fracture
• Fetus loss
• Permanent loss/limitation of use of body organ/system use
• Inability to substantially perform material acts of usual/customary daily activities for at least 90 days (during 180 days after accident)

Question 5

Who is ‘Covered person’/’Non-covered person’?

Answer 5

Covered person

• Pedestrian/Owner/Operator/Occupant
• Injured by use/operation of vehicle

Non-covered person

• Manufacturer
• Defective seatbelt

Question 6

What may ‘Covered person’ recover from ‘Non-covered person’?*

Answer 6

Basic economic loss

If Insurer paid ‘first-party benefits’ to ‘Covered person’ (Basic economic loss) => Insurer has lien vs judgments (to extent of ‘first party benefits’ paid)