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  1. #1
    Join Date
    Jul 2014
    Posts
    7

    Question Personal Liability Beyond Insurance Limits

    My question involves an injury that occurred in the state of: Nevada

    My juvenile daughter caused an auto accident in which a motorcycle rider was seriously injured. She is an insured driver on our policy, my wife is the registered owner of the car involved. The moto rider is not head injured nor paralyzed, but has suffered serious trauma to one leg. There is currently a 50% chance some of the leg will be lost. The victim has undergone two surgeries to date and remains in hospital.

    My daughter was cited for failure to yield. There is no accusation of distracted driving, alcohol or drugs. The accident was low speed at a semi-blind, uncontrolled city intersection. My insurance adjuster has indicated they will likely accept fault.

    Although we have good liability coverage through a major carrier, it seems likely the medical bills will exceed our insurance limit. If this is indeed the case,

    (1) Should we expect to be personally sued by the moto rider's insurance carrier?

    (2) What steps can we take to protect ourselves financially? Our home is homesteaded.

    (3) Which assets are subject to seizure/forfeiture in such a law suit? Is my 403B retirement fund a possible target? My wife's state retirement?

    Thank you.

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Personal Liability Beyond Insurance Limits

    1. Yes
    2. Work closely with your insurance company to try and get them to accept the insurance payout.
    3. NRS 21.090 outlines the general factors regarding collection. Read the laws in this chapter:

    https://www.leg.state.nv.us/NRS/NRS-021.html

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Personal Liability Beyond Insurance Limits

    Nevada has an owner liability statute covering family members,
    Quote Quoting NRS 41.440  Imposition of liability.
    Any liability imposed upon a wife, husband, son, daughter, father, mother, brother, sister or other immediate member of a family arising out of his or her driving and operating a motor vehicle with the permission, express or implied, of such owner is hereby imposed upon the owner of the motor vehicle, and such owner shall be jointly and severally liable with his or her wife, husband, son, daughter, father, mother, brother, sister or other immediate member of a family for any damages proximately resulting from such negligence or willful misconduct, and such negligent or willful misconduct shall be imputed to the owner of the motor vehicle for all purposes of civil damages.
    So statutorily, you are liable for the injuries caused by your daughter's negligent operation of your vehicle.

    Most auto negligence cases do settle within policy limits, as to recover an additional amount normally requires both that a case be litigated to trial and that the defendant has assets that can reasonably be reached to satisfy the judgment. Retirement accounts are exempt from garnishment. As the judgment can potentially be discharged in bankruptcy, and as garnishment can be a protracted process, most accident victims end up settling for the policy limits. Depending on your income and assets, it is possible that the victim would hold out for a contribution above the policy limits, but that's not something we can say much about given that we don't know about your financial situation. There's little you can do to protect yourself after-the-fact -- it's too late to increase your coverage.

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Personal Liability Beyond Insurance Limits

    Quote Quoting StrangeMan
    View Post
    we have good liability coverage through a major carrier,
    What are your Bodily Injury Liability limits per person, per accident?

    Quote Quoting StrangeMan
    View Post
    Our home is homesteaded.
    Which means you have filed a Declaration of Homestead which protects your home's equity up to $550,000?

    Quote Quoting StrangeMan
    View Post
    Is my 403B retirement fund a possible target? My wife's state retirement?
    No and no.

    Other assets may be exempt up to certain amounts, too.

    21.090 provides a list.

    https://www.leg.state.nv.us/NRS/NRS-...l#NRS021Sec090

  5. #5
    Join Date
    Jul 2014
    Posts
    7

    Default Re: Personal Liability Beyond Insurance Limits

    Thank you, everyone, for your feedback.

    Quote Quoting Mr. Knowitall
    View Post
    Nevada has an owner liability statute covering family members,

    So statutorily, you are liable for the injuries caused by your daughter's negligent operation of your vehicle.

    Most auto negligence cases do settle within policy limits, as to recover an additional amount normally requires both that a case be litigated to trial and that the defendant has assets that can reasonably be reached to satisfy the judgment. Retirement accounts are exempt from garnishment. As the judgment can potentially be discharged in bankruptcy, and as garnishment can be a protracted process, most accident victims end up settling for the policy limits. Depending on your income and assets, it is possible that the victim would hold out for a contribution above the policy limits, but that's not something we can say much about given that we don't know about your financial situation. There's little you can do to protect yourself after-the-fact -- it's too late to increase your coverage.
    Without going into a detailed breakdown of our finances, I can say that the assets we have which are not exempt under NRS 21.090 (thank you, Knowitall, for this reference) would amount to very little compared to the insurance limit. This gives me some peace of mind.

    What are your Bodily Injury Liability limits per person, per accident?
    $100,000/$300,000

    Which means you have filed a Declaration of Homestead which protects your home's equity up to $550,000?
    Yes. Even so, the equity we have in the home-thanks to the Great Recession-is small compared to the insurance limit.

    Thanks again for the feedback.

  6. #6
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Personal Liability Beyond Insurance Limits

    Another thing working in your favor is that the rider's lawyer will want his payday sooner than later and will want to avoid the costs of a protracted lawsuit.

  7. #7
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Personal Liability Beyond Insurance Limits

    Do you have an umbrella homeowner's policy that can pick up the difference between your auto limits and what you may get sued for?

  8. #8
    Join Date
    Jul 2014
    Posts
    7

    Default Re: Personal Liability Beyond Insurance Limits

    Sadly we do not. Hind sight is 20/20, no?

  9. #9
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Personal Liability Beyond Insurance Limits

    Yes, hind sight is 20/20. For what an umbrella policy cost per year it's good insurance. Lessons learned and good luck to you.

  10. #10
    Join Date
    Jul 2014
    Posts
    7

    Default Re: Personal Liability Beyond Insurance Limits

    Quote Quoting adjusterjack
    View Post
    Another thing working in your favor is that the rider's lawyer will want his payday sooner than later and will want to avoid the costs of a protracted lawsuit.
    Let me see if I have the whole (or most of) the picture.

    (1) My insurance will pay the victim's medical bills up to the stated limit on my liability in exchange for the victim giving a signed release.

    (2) The release prevents the victim from pursuing pain and suffering payment or other compensation.

    (3) The victim's insurance would pay medical bills beyond my insurance limit up to the victim's under-insured motorist limit.

    (4) Regardless of whether or not the victim has signed the release with my insurer, his insurance carrier is likely to personally sue me to recover whatever they are able to recover.

    or

    The victim could refuse the insurance money and pursue a lawsuit through an attorney.


    Is this about right?

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