Q: If California defendant auto PI case settles for full policy 15K. Normal practice plaintiff collects all of the money
Of Infinity policy holder declaration, max award is 15K. Infinity trying to keep 2700 USD of the 15K stating they are going to pay the lien at the hospital ER. I refused the settlement offer of less than 15K and wish to continue onto trial I told them. Infinity motion for protective order recently denied by court. Defendant rear ended me and was cited for speeding. Now they request to settle. But I want all of the 15K so that I can negotiate with hospital bill dept. What is a scenario that plays out in these types of situations? I am pro se.
A:
If you are in California, the hospital has a lien on the recovery for emergency room services pursuant to Civil Code 3045.1-3045.6. The insurer has to withhold that money to protect the lien, or it could be liable to the hospital, in addition to the policy limit if you don't pay, which is common with pro se litigants.
There is nothing stopping you from negotiating with the hospital now to reduce the amount that Infinity will pay to satisfy the lien.
James R. Dickinson agrees with this answer
A: Insurance companies have a legal duty to protect hospitals for liens related to emergency services. The reason is because pro pers rarely pay off the liens so the law places the burden on attorneys and insurance companies. You might be able to get around this issue if your Release contains a clause providing that you will pay off all medical liens and indemnify the insurance company.
A: It could be difficult to offer a universal scenario. Things often depend on the lienholder. Some write liens off, and some pursue them aggressively. It's up to the insurance carrier, hospital, physician, or other lienholder. Good luck
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