Legal Question in Personal Injury in California
Reinbursment for Medical Costs Paid by my Insurance
My wife and children were in an accident, that was the other drivers fault. Our insurance cocmpany has paid for our medical costs so far. When we settle with the other drivers insurance company do we have to reimburse our Insurance Company for the medical expenses that they have paid? Or is this part of our medical payment coverage in our policy.
2 Answers from Attorneys
It depends if you have to reimburse your insurance company
Whether you have to reimburse your insurance company in the situation you described, depends on your insurance policy. Some insurance policies require reimbursement and some don't. Look at and read your policy.
Remember that there are time limits to bring a claim in California. As in all legal situations, it is always best to seek a "face to face" consultation with an attorney about your specific situation.
Maybe "yes" and maybe "no"
First, your auto insurance policy must have a "reimbursement" clause in it. If not, all of the med pay money is yours to keep. Second, if your policy does have a med pay reimbursement clause, then the case of Lee v. State Farm allows you to deduct your costs of collection (pro rata attorneys fees and costs)from the med pay reimbursement. For example, if you were paid $6,000 in med pay and were paying your attorney 33-1/3% in attorneys fees and had no costs, you may deduct 33-1/3% from the $6,000 and send the insurance company only $4,000.
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