Legal Question in Personal Injury in California

Re: accepting tender

If a person is insured, and the person is accused of causing an accident, the person will "tender" the claim to his or her insurance carrier. If the carrier believes that either the risk is one that is covered, or at least a defense is warranted under the insurance policy, it will accept the tender of defense and/or indemnity. Sometimes it will accept the tender with reservation of rights -- usually if the lawsuit asks for punitive damages, which an insurance policy does not cover. Usually, though, automobile accidents don't involve punitive damages unless the driver deliberately caused the vehicle to injure someone or, perhaps, if the driver were under the influence of drugs or alcohol. I hope this answers your question.