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Corson & Johnson

Making Sure the Law Works For Everyone

Insurance Company’s Unfair Offer Rejected by Arbitrator

Oregon may be the only state in the country where you cannot hold your own auto insurance company accountable for unfairly evaluating the value of your claim. What does that mean? We all know bad driving happens. A careless driver may crash into your vehicle and cause serious injury to you or your loved one. Serious car accidents can result in enormous medical bills and loss of the ability to earn a living for a period of time. The financial burden can reach into the hundreds of thousands or even millions of dollars.

Underinsured Motorist (UIM) Coverage

When the careless driver that caused the injuries has only the minimum coverage under the law ($25,000), the other driver’s insurance does not even begin to meet the losses he caused. Because of this risk, many of us carry additional underinsured motorist (“UIM”) coverage with our own insurance companies. This typically ranges from $50,000 to $1,000,000. Under these policies, your insurance company is supposed to pay you for the total amount of the harm you suffered regardless of the amount of insurance the bad driver carries, up to your own UIM limits.

Many people trust their own insurance companies and believe that payment is based on a fair investigation of their injuries and losses. However, we are increasingly seeing insurance companies refuse to fairly assess the losses that their customers suffer from underinsured drivers. Instead, customers who have faithfully paid their premiums for years are offered only a fraction of what is due to them in light of the severity of their injuries and losses. Because they trust their insurance company, some injured persons will take those low-ball offers. As a result, the insurance company avoids paying the full amount that it is obligated to pay. In other situations, the injured parties recognize the evaluation as unfair and contact an attorney to bring a case against the insurance company so that a neutral third party, such as an arbitrator, will be used to make a fair evaluation.

Standing Up Against Big Insurance Companies

Recently, we took such a case to arbitration. A careless driver had hit our client, a doctor, at a stop light, causing our client to need neck surgery. She suffered permanent injury as a result of the accident that caused her to lose part of her past and future income. The Farmers insurance company offered only $50,000 of additional money on her underinsured motorist policy. The bad driver’s insurer settled for $100,000. The facts were simple and the insurance company had very weak evidence to support their argument. We obtained overwhelming evidence that the doctor indeed suffered serious medical, physical, and financial losses. The arbitrator fairly evaluated the claim at $380,000.

We are familiar with other cases in Oregon in which Farmers insurance and other insurance companies refused to fairly assess their insured’s underinsured motorist claims. In these cases, the only way for the injured person to fairly recover is to bring the case to trial or arbitration.

In other states, insurance companies would be subject to a bad faith claim if they ever chose to unfairly evaluate their customer’s claims. Those bad faith claims could result in punitive damages. Exposure to punitive damages is a deterrent against such conduct by insurance companies in those states. But in Oregon, there is no punishment for an insurance company that acts this way.

New Oregon Laws Affecting Seniors and Children

The Oregon Legislature  moved forward in its session last February to create common sense protections against harms unique to elders and children.

Protecting Oregon Children from Lead Exposure

We have long been involved in taking steps to help raise awareness about the dangers of lead exposure to our children, and in the past provided free lead test kits to families so they could assess lead risks in their own homes.  Accordingly, we were pleased to see the Oregon Legislature pass HB 4015, which is a small but important piece of legislation to protect Oregon children from lead exposure.  The bill requires the Oregon Health Authority to create an information clearinghouse for Oregon schools so that they may have immediate access to reliable information on the dangers to students posed by lead, how to protect students from lead-based paint, how to recognize lead risks in the schools, information on how to safely renovate a school, and other critical information regarding lead exposure. HB 4015 goes in to effect January 2, 2013.

Protecting Elders

Under HB 4084, which went into effect on March 27, 2012, the Oregon Legislature took further steps to protect elders from financial and property crimes.  The new law expands the statute of limitations for several felony crimes from 3 to 6 years when the crime is committed against a person who is over 65 years old.  Many of the elders are in vulnerable situations where their life decisions have been largely delegated to third parties who do not always have their best interests in mind.  Accordingly, crimes such as theft, forgery, extortion and identity theft against persons over 65 years old can be hidden by the perpetrator, with the elder victim sometimes not in an position to realize that the crime has been committed.  Before this change, if the crime was not discovered within three years  the perpetrator could not be prosecuted, but now the perpetrators can be prosecuted for up to six years after the crime is committed.

 

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