Long Island, Manhattan Accident Attorney Blog

More Drivers Are Uninsured As Recession Grows Deeper

Chances are increasing that the next fender bender you are involved
in could be with someone without car insurance. As the recession
leaves millions of workers unemployed and pressures family budgets,
one place many are cutting is their insurance coverage.

The Insurance Research Council (IRC) estimates that by next year
nearly one in six motorists may be driving without insurance. That’s 3
million more uninsured drivers than just five years ago.

For every 1 percent increase in unemployment nationwide, the
percentage of uninsured motorists increases three-quarters of a
percentage point, IRC Vice President David Corum said. That could
result in a total of 16.1 percent by next year, an all-time high. The
rate was 13.8 percent in 2007. Based on current unemployment rate
projections, the percentage of uninsured motorists is expected to rise
to 16.1 percent in 2010.

The group examined data collected from nine insurance companies,
representing approximately 50 percent of the U.S. private passenger
auto insurance market. According to the IRC, the estimates for
uninsured motorist activity were based on a ratio of insurance claims
made by individuals who were injured by uninsured drivers to claims
made by individuals who were injured by insured drivers. The study
contains recent statistics by state on uninsured motorists claim
frequency, bodily injury liability claim frequency, and the ratio of
uninsured motorists to bodily injury claim frequencies.

New York is not in as dire shape when it comes to car insurance as it
is with the economy. The Empire State is tied for the third lowest
uninsured motorist rate at 5 percent, 4 percent behind Massachusetts. New Mexico led all states with a 29 percent uninsured motorist rate.

Travelers Cos. Inc. reports that there has recently been a mild
increase in uninsured claims and warns against dropping insurance as a
way to save money. William Pearse, the St. Paul, Minnesota company’s
vice president of product strategy and design notes that it’s equally
important to carry liability insurance that covers people in the other
car and to have uninsured motorist coverage on your policy, which
protects you if the other car is not insured. The average cost for
liability insurance in the United States is about $40 to $50 a month.
Although costs can vary, uninsured motorist coverage typically adds
from 7 percent to 10 percent to an insurance premium. Drivers without
at least liability insurance are breaking the law in all but two
states.

Defective Car Cases

When attempting to show a car manufacturer or seller’s liability for
a car defect, you do not need to show that they were careless. Unlike
personal injury claims that are based on negligence, liability in car
defect cases is controlled by strict liability. Regardless of the
steps a manufacturer says it takes in creating or handling a car, you
can make a strict liability claim based on a car defect if certain
conditions are present:

1) The car had an unreasonably dangerous defect that harmed you. The
defect may arise from either the car’s design, during handling,
manufacture, shipment, or through a failure to warn consumers of a
dangerous aspect of the car.

2) An injury arose from the defect, while the car was being used properly.

3) There were no substantial alterations to the car from its
original condition when sold.

Manufacturer Defenses

The car manufacturer and the seller may have a defense to your strict
liability claims, particularly if you have owned the car for some
time, if it can be shown that you knew about the defect but continued
to use the car anyway. This can be established through either the
car’s condition or from your description of the use of your car. In
some states, a manufacturer or seller may also be able to defend
against your lawsuit under the theory that your contributory or
comparative negligence was the cause of your injuries.

Punitive Damages

There has been an increasing trend in car liability of
awarding more punitive damages for those who have successfully brought
a claim against a manufacturer or seller. These punitive damages
awards are above and beyond damages to compensate a plaintiff for his
or her injuries, and can range into tens of millions of dollars in
certain instances. Punitive damages are intended to punish
manufacturers and encourage them to fix defects that have resulted in
injury. Traditionally, car manufacturers have engaged in what is known
as a “cost-benefit” analysis when deciding whether to change a
potentially defective design. In this process, the manufacturer will
calculate the cost of implementing a design change, and weigh that
cost against the potential cost of litigation and settlement after the
defect causes injuries. Punitive damages are often awarded in order to
add to the potential costs a manufacturer will face if it decides not
to fix a design defect, thus shifting the cost-benefit analysis toward
the elimination of defects.

A Sobering Report About Uninsured Drivers

The ways that a faltering economy can affect America are almost without number. You can lose your job, lose your car or lose your house or apartment. If you own a business, all of a sudden nobody has any money to buy your goods or services. Life can get very perilous very quickly.

The Insurance Research Council just released a report that illustrates this point. According to the report, the faltering economy will cause the numbers of uninsured drivers to rise significantly:

MALVERN, Pa.—Approximately one in six drivers across the United States may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC). Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate.

The last thing anyone needs is to get hit by a driver with no insurance. Make sure that your policy has uninsured or underinsured coverage as soon as possible.

To read the full report, follow the link below.

New Limits on Medicaid

A recent article in the November issue of "The Suffolk Lawyer", discusses the important issue of Medicaid liens. In it, it states that "the Second Department has limited the right of a Social Services Department to recover from a personal injury settlement the monies expended by Medicaid in the care and treatment of a person with Down’s Syndrome to the period after the creation of a supplemental needs trust (SNT) and not from the date Medicaid first established the recipient’s eligibility for benefits. In doing so the court harmonized several provisions of state and federal law respecting the creation of SNTs in light of the requirements that an SNT contain repayment language and in consideration of the recent United States Supreme Court decision in Arkansas Department of Health and Human Services v. Ahlborn (547 US 268). "

The article further discusses the case, Matter of Ruben N. v. Elizabeth T., 2008 Slip Op 06997, decided September 16, 2008, which involved a person with Down’s Syndrome, wherein Medicaid paid his medical bills. Ultimately, the malpractice action settled on August 23, 2002 for $1,600,000.00, with DSS agreeing to accept $102,423.56, in compromise of the 104-b Medicaid lien, attaching against the proceeds of the personal injury action.

By effecting this resolution with DSS, the balance of the settlement proceeds were placed in a supplemental needs trust, which permitted those funds to be disregarded in any calculation of eligibility for Medicaid benefits. The supplemental needs trust in compliance with both federal, state and Social Services law normally contains language, that upon the death of the beneficiary, "the state would receive the remaining trust corpus to the total value of ‘all medical assistance’ provided by Medicaid to the beneficiary."

The party to the case died in 2003. At that time DSS demanded payment, "for all Medicaid disbursements for Ruben’s medical care during his entire lifetime, both before and after the spinal surgery resulting in the paralysis, in the amount of $632,714.22".

It was ultimately decided by the Appellate Division Second Department, to limit the monies received by DSS to the period of time after the creation of a supplemental needs trust, and not the date that Medicaid first established the recipient’s eligibility for benefits.

What Grade Did Your Medical Insurance Company Get?

The American Medical Association has released a report card which rates medical insurance companies based on their efficiency in paying what they owe to doctors.  

You can bet that if your insurance company isn't regularly paying their doctors for what they owe you, then they probably wont be very much help when you need them.

For more information, follow the link below.

http://www.medpagetoday.com/PublicHealthPolicy/PracticeManagement/tb/9876

5 Simple Steps To Deal With Your Insurance Carrier

Here are some tips you can use in dealing with insurance companies:

READ YOUR POLICY CAREFULLY: You should know exactly what is covered and how to appeal a denial by your insurance company.

BE VERY CAREFUL FILLING OUT FORMS: Even if you make an honest mistake your insurance company may seize on that as a reason to retroactively deny your coverage.

DO NOT CASH A PREMIUM REFUND CHECK: If your insurance company rescinds your insurance they may send you a refund for the premiums you paid. Cashing it may be interpreted as accepting their decision.

PUT EVERYTHING IN WRITING: Calling your insurance company is likely to be a frustrating experience, and you will not be able to prove anything that a company representative tells you over the phone. Keep records of all bills and correspondence.

CONTACT YOUR STATE INSURANCE DEPARTMENT: They may be able to help you. But they will not represent you in a private matter, so if all else fails you may need to consult with an attorney.

AND MOST OF ALL, DO NOT GIVE UP: Insurance companies count on you giving up. Fight for your rights.

More Drivers Driving Without Car Insurance

Americans have been seeking ways to cut their spending in these tumultuous economic times. One of the biggest cost casualties has been car insurance. The number of uninsured motorists nationwide has doubled in the past year from 10% to 20%, according to the online agency Insurance.com.

"Money is a little tight with people, and they decide if they need to skip on something, they'll let their insurance lapse," said Sam Belden, Vice President of Insurance.com. "It's directly attributable to the economy," he added. "And it's exacerbated by premiums also rising over the past year. When people are squeezed the most, the insurance rates are also going up."

Belden said insurance premiums have increased by 6 or 7 percent this year.

The Insurance Research Council, a group funded by the insurance industry, is expected to release a study next month showing that several hundred thousand drivers dropped their insurance in 2008, partly because of the economy and jobless rate. About 40 percent of callers who followed up on online applications this year let their policies lapse, up from 10 percent a couple of years ago.

David Corum, vice president of the council, said the study shows that a single percentage point increase in unemployment is associated with a half-point increase in uninsured drivers. Despite the hike in rates and the stumbling economy, Belden said policyholders should never let their coverage lapse. Drivers who let their policies lapse usually must pay up to a 50 percent surcharge for a new policy.

Belden said drivers should talk to their agents about various payment options suited for their income. "If you pay once every three months, the amount may look absurd," Belden said. "You can move to monthly payments to even it out. If it gets too desperate, some insurance companies take partial payments at a time. If all else fails, maybe you're with the wrong company. There's a lot of rate variation between the insurance companies out

Great New Article on "Defensive Medicine"

There is a wonderful new article in The New York Times about a serious problem that doctors are having dealing with insurance companies. Turns out they have just as many problems with them as we do.

If you aren't registered with The New York Times, you should definitely do so. It's free, and they don't put your names on any lists. And the information in this article is completely worth it.

http://www.nytimes.com/2008/06/17/health/views/17essa.html?_r=3&adxnnl=1&oref=slogin&adxnnlx=1214861643-dkIuVRsWldrHWAkgc+9Ixg