QUESTION
why does an insurance company call ones health insurace to notify them they have given you a settlement
Asked on Nov 15th, 2013 on Automobile Accidents - South Carolina
More details to this question:
hit from the rear sitting at traffic light. Had to have 2 surgeries to repair seatbelt damage to chest implants . The insureds insurance is offering a settlement but informed me they would be notifing my health insurance company of the settlement and that my insurace company would want any payments made by them refunded. Insured had minumim coverage and my two surgeries are more than settlement.
1 ANSWER
The concept behind this practice is called subrogation. Basically, since your insurance had to pay out money to the doctors for your injuries, they are entitled to a portion of your settlement to pay them back for money they spent on you that they should not have had to spend. It is common practice in car accidents, but don't despair. Your insurance company will want to know how much the settlement is, and what percentage cut your lawyer is getting, if you have one. Your insurance company will use these two figures to decide how much they will require to be reimbursed for the money they have spent. If that number seems too high, you can call the insurance company and see if they will take less.
Answered on Nov 19th, 2013 at 3:19 PM