Q: State of Ga do i have to divulge a settlement amt from @ fault carrier to “my”carrier before they pay for UIM claim? Why

A: A Georgia attorney could advise best, but your question remains open for two weeks. Until you discuss this definitively with a local attorney, the general answer to your question nationwide is "yes." Insurance practices are governed by state law, but in general, insurance carriers have a right to know the opposing liability carrier's offer. Additionally, your UIM policy probably has a clause requiring you to obtain permission to settle. You may already be represented here, but if you are not, you could consider consulting with a Georgia attorney to discuss this important matter in greater detail. Good luck

A: I agree with my colleague. The UIM insurer has a right to know any settlement amounts from the at-fault liability insurer because in Georgia there is "set-off" UM coverage. With set-off UM coverage, the UM insurer offsets its UM exposure by the liability limits (i.e., the amount paid to you by the liability insurer). An example may be illustrative.

The at-fault driver has $50,000.00 in liability coverage and pays that amount to you. You, through your own insurance company, have $100,000.00 in set-off UM coverage. Pursuant to the liability set-off of $50,000.00, your UM insurer would only be exposed for $50,000.00 in UM coverage, even though you have a $100,000.00 UM policy. The rational is that the UM carrier should not have to pay the amount the actual tortfeasor paid because the UM carrier is only involved as extra insurance, did nothing to cause the accident or injuries, and it would result in a windfall for the Plaintiff.