Insurance Issues

Claims of Bad Faith Against D.C. Insurance Companies

June 17, 2021 | Lebowitz & Mzhen

The aftermath of a car accident can be stressful, if not devastating, for many Washington, D.C. accident victims. Victims of D.C. car accidents often rely on insurance companies to resolve accident claims. But what can accident victims do when an insurer fails to act in good faith to resolve a claim?

What Is a Bad Faith Insurance Claim?

Under D.C. law, all contracts, including insurance contracts, contain an implied covenant for all parties to act in good faith. Parties to the contract may be able to recover damages for a breach of contract if a party fails to act in good faith. D.C. courts have not recognized a separate tort of bad faith by insurance companies in the handling of policy claims. However, in addition to breach of contract claims, there may be other claims relating to insurance contracts, such as fraud and negligent misrepresentation. Some states recognize a separate claim of bad faith. One recent case reflects how a claim of bad faith may be interpreted by a court.

In that case, a drunk driver hit a woman’s vehicle at a railroad crossing, causing it to crash into an oncoming train. The woman suffered permanent injuries, and her eight-year-old son was tragically killed in the crash. The other driver was arrested and charged with DUI manslaughter. He later pleaded guilty and was sentenced to 12 years in prison. The insurer of the drunk driver quickly offered a total of $20,000 to the woman and her son’s estate, amounting to the full bodily injury policy limits under the policy.

How Do Washington, D.C. Courts Interpret Insurance Policies After a Crash?

April 13, 2021 | Lebowitz & Mzhen

In a Washington, D.C. car crash case requiring a court to interpret a contract, general contract principles must be applied. Under Washington, D.C. law, courts will look at the contract’s written language, regardless of the parties’ intent at the time the contract was made. If a contract is not clear based on the contract’s written language, courts will consider the contract as a whole and will determine the meaning of the contract and its terms based on all of the surrounding circumstances when the contract was made. In considering the surrounding circumstances, courts will allow external evidence to be admitted to help explain and determine the parties’ beliefs and actions at the time. Courts will generally consider what a reasonable person in the parties’ positions would have thought the terms in dispute meant—unless the terms clearly had a technical or specialized meaning. In addition, if the language of a contract is open to two interpretations, courts will interpret the contract in favor of the insured.

Whose Burden Is It to Prove a Claim Is Not Covered Under an Exclusion?

Insurance policies also may contain exclusions, but exclusions must be strictly construed in favor of the insured. Further, if an insurer tries to avoid liability under an insurance policy by claiming that an exclusionary clause applies, the insurer has the burden to prove that the case falls under the specified exclusion.

Washington, D.C. Residents Involved in Car Accidents May Be Denied Insurance Coverage Due To Strict Notice Provisions

October 14, 2020 | Lebowitz & Mzhen

Purchasing car insurance is a good idea for all Washington, D.C. residents who drive—whether it be to work every day or just for errands occasionally. Whilst most car trips conclude without incident, Washington, D.C. car accidents do occur every day and can cause severe injuries in the blink of an eye. If a Washington, D.C. resident is involved in a car accident, they may rely on their insurance to cover the resulting costs, to ensure that they do not go into debt as a result.

However, it is important for all Washington, D.C. drivers to remember that having insurance does not necessarily mean you are covered in all circumstances, no matter what. Some insurance policies may have specific rules or procedures that drivers must follow if they hope to collect under their policy. For instance, some have “notice provisions,” which require a driver to notify the insurance company about an accident and resulting injuries and treatment to recover under the policy.

A recent state appellate court case, resulting from a car accident, provides an example of how these notice provisions work. According to the court’s written opinion, the accident occurred in August 2016, when the plaintiff was rear-ended while stopped at an intersection. After the collision, the plaintiff went that same day to a doctor’s office. The doctor examined her and x-rayed her neck, and then told her that she had whiplash. Almost two years later, in March of 2018, the plaintiff had surgery on her neck. At the time of the accident, the plaintiff was insured by the defendant in the case, a well-known insurance company. Her policy stated that, to make the specific type of claim involved in this case, she must notify the insurance company of the claim and give them all of the details about the death, injury, treatment, and other information the company may need as soon as reasonably possible. The policy then stated that legal action could not be taken against the defendant insurance company unless the insured complied with the policy’s provisions.

Uninsured and Underinsured Motorist Claims in Washington, D.C.

October 6, 2020 | Lebowitz & Mzhen

Although drivers are required to have insurance, there are drivers on the road without adequate coverage or without insurance at all. However, in the event of a Washington, D.C. car accident with an uninsured or underinsured driver, an accident victim may be able to seek compensation through their own insurance policy by filing a claim for uninsured or underinsured motorist benefits.

Washington, D.C. law requires that insurance companies offer uninsured motorist coverage to drivers. Uninsured and underinsured motorist coverage protects insured motorists if the insured is involved in a Washington, D.C. car accident with another driver who is uninsured or underinsured. Uninsured motorist coverage refers to coverage after an insured is involved in an accident with a driver that does not have any motor vehicle liability insurance. Underinsured motorist coverage refers to coverage after an insured is involved in an accident with a driver that has liability insurance but whose coverage is less than the insured’s underinsured motorist coverage. The limits of coverage generally depend on the language in the insurance policy, as in the case below.

Driver Obtains Uninsured Motorist Benefits After Crash with ATV

Dealing with Difficult Insurance Companies after a Washington, D.C. Accident

March 13, 2020 | Lebowitz & Mzhen

Homeowner’s insurance policies can be very advantageous for Washington, D.C. residents. It can protect homeowners from claims brought against them for property damage or bodily injury arising out of their property or tortious conduct. However, insurance companies are notoriously difficult to work with when an incident does occur, because they have an interest in paying as little as possible, and so they often deploy expensive legal teams to reduce their liability. Because of this, Washington, D.C. accident victims who decide to file civil suits against a negligent party may find themselves involved in litigation with the defendant’s insurance company first.

A recent case considering insurance policy provisions in another state highlights the importance of what a policy does and does not cover. According to the court’s written opinion, the insured purchased a homeowner’s insurance policy from his insurance company, which provided coverage for both personal liability and property damage. The policy contained an exception and did not cover the insured if a claim was made against him for damages arising out of a premises owned or rented by the defendant but not insured under the policy. The insured owned a cabin in Maine that was not insured under the policy and was the location of the tragic incident that sparked this lawsuit.

In the summer of 2015, the insured’s two children, along with two of their friends, went to the cabin to celebrate an upcoming birthday. In the cabin, they plugged in the cabin’s small generator the insured kept at the property to charge power tools. They ran this generator inside the cabin without opening any windows or doors, and ultimately all four died of carbon monoxide poisoning.

How Does Washington D.C.’s “No-Fault” Auto Insurance Law Affect Injured Motorists?

December 11, 2018 | Lebowitz & Mzhen

When someone is involved in a Washington, D.C. car accident, they are often able to recover compensation for their medical expenses, lost wages, and other out-of-pocket expenses through an insurance claim filed with their own insurance carrier. However, an accident victim will not be permitted to recover for their pain and suffering through a claim with their own insurance company. This is due to Washington, D.C.’s no-fault insurance law.

What Is the No-Fault System?

The insurance requirements for Washington D.C. drivers are found in District of Columbia Code Chapter 24. Here, lawmakers have outlined the required amount of insurance motorists must obtain, and the process by which insurance companies approve or deny claims. In addition, the Chapter describes the District’s no-fault insurance system.

Under the no-fault system, a motorist can recover compensation for their injuries without establishing who was at fault for the collision that resulted in their injuries. While this sounds like it may favor accident victims, the system also limits the type of compensation that is available to accident victims to actual monetary losses. Thus, a Washington, D.C. car accident victim will not be eligible for compensation for their pain and suffering or other emotional damages unless they can establish the accident resulted in:

Virginia Court Rules in Favor of Insurance Company in Uninsured Motorist Accident Case

May 9, 2018 | Lebowitz & Mzhen

Recently, a federal appellate court issued a written opinion in a Virginia car accident case requiring the court to determine if the defendant insurance company was required to cover the costs of the plaintiffs’ injuries through the plaintiffs’ underinsured motorist (UIM) policy. Finding that the vehicle in which the plaintiffs were driving did not meet the definition of a “covered auto” under the policy, the court rejected the plaintiffs’ theory of liability and dismissed the case.

The Facts of the Case

A furniture company hired the plaintiffs as independent contractors to deliver a load of furniture. Normally, the furniture company used another company, but that company was unable to make the delivery, so the company asked the plaintiffs to make the delivery last-minute.

Due to the last-minute nature of the request, the plaintiffs did not have a vehicle available, so the furniture company allowed the plaintiffs to make the delivery using a truck that the company had rented. As the plaintiffs were making the delivery, another motorist struck the truck, killing one of the plaintiffs and seriously injuring the other.