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  1. #1

    Question Signing a Declaration for a Settlement

    My question involves insurance law for the state of: California.

    Hello,
    I was in a car accident in March of last year. Unfortunately, I did not have the coverage limits on my auto insurance policy to cover all the expenses for the other party so they proceeded to litigation. Over a year later, my insurance company let's me know that the other party wants to settle for the limits I did have on my policy but I would have to sign this declaration which I am skeptical about:
    DECLARATION OF JOHN DOE

    I, John Doe, hereby declare as follows:

    1. That on or about March 1, 2017, I was the driver and registered owner of a 2015 Subaru vehicle, with a California License Plate.

    2. That on or about March 1, 2017, my vehicle was involved in an automobile collision in Los Angeles County, California with another vehicle, wherein Mr. Tom Smith, was seriously injured.

    3. That I understand that Mr. Tom Smith is making claims against me for damages (including but not limited to medical expenses, loss of wages & pain and suffering).

    4. That I understand that if I were found to be liable for the incident in this or any other judicial proceeding and a verdict and/or judgment were entered against me, my insurance policy with P. Insurance Company may not cover all of the losses that Mr. Tom Smith, is claiming against me.

    5. That I understand that my P. Insurance Company policy in effect at the time of the subject incident provided bodily injury limits of $__10-30k______ per person and $__15k______ per accident.

    6. That I am representing to Mr. Tom Smith, and his attorneys that I am not aware of, do not own, am not named and cannot be construed as an insured on any other insurance policy whatsoever that may cover any of the losses that Mr. Tom Smith is claiming against me and that there is, in fact, no other policy (other than the P. Insurance Company) which may cover the claims of Mr Tom Smith. I am further representing that I do not own, am not named and cannot be construed as an insured on any umbrella policy and/or any homeowner’s insurance policy that may cover any of the losses Mr. Tom Smith is claiming against me. I have provided to Mr. Tom Smith, and his attorneys, copies of all insurance policies under which I could possibly be construed as an insured and that the only policy I have is the P. Insurance Company.

    Initials______________

    7. That I was not within the course and scope of my employment at the time of the collision on March 1, 2017.

    8. That I have not transferred to any other person any assets over $1,000.00

    within the last year.

    9. That I do not own any assets worth $5,000.00 or more. I do not own any

    stocks, bonds or real estate.

    10. That my income consists entirely of _________17k (annual)__________________________________________ __________

    __________________________________________________ _________________________

    My employers for the past two years are: __________________________________________________ _________________________.

    11. That I understand Mr Tom Smith., and his attorneys are relying on all of my aforementioned representations made in this declaration.

    12. That I understand that but for all of my aforementioned representations

    made in this declaration, Mr. Tom Smith, and his attorneys would not accept the $_______ policy limits offer of settlement on my Insurance Policy with P. Insurance Company.

    13. That should this matter proceed to litigation, the Superior Court of California would retain jurisdiction, even if the case is dismissed, to enforce the terms of this declaration under CCP Section 664.6 until performance in full of the terms of the settlement.

    I declare under penalty of perjury that the above is true and correct. Executed at ________________________, California on _______________________.

    ______________________________

    John Doe
    Items # 4 and 13 are the most concerning to me as I can’t help but think that the insurance just wants to forgo all liability and dump it onto me, but then again I am not well versed in litigation.


    My question is simple. I do not have much equity or any real income but I am going to be entering a career that may change my circumstances. So will signing the document hinder any financial matters in the future and is it really in my best interest?

    Thank You So Very Much

  2. #2
    Join Date
    Oct 2016
    Posts
    2,651

    Default Re: Signing a Declaration for a Settlement

    Is there anything in the agreement you don't understand?

  3. #3

    Default Re: Signing a Declaration for a Settlement

    Quote Quoting PayrolGuy
    View Post
    Is there anything in the agreement you don't understand?
    Well if the other party wants to settle, why does the document bring up "if the matter proceeds further litigation" over and over?

    Also, I was just concerned about the items I mentioned (#4&13). I'm not well versed in this world, so I want to make sure my insurance company doesn't want to dump the liability on me.

    I'm aware that these kind of documents are not uncommon with settlements but I'm always hesitant when dealing with huge insurance companies and their lawyers nonetheless.

  4. #4
    Join Date
    Jul 2018
    Posts
    1,061

    Default Re: Signing a Declaration for a Settlement

    Read this.

    Quote Quoting Armengeddon512
    View Post
    Well if the other party wants to settle, why does the document bring up "if the matter proceeds further litigation" over and over?
    It's saying what would happen if the case didn't settle and were to proceeding further in litigation.

    Quote Quoting Armengeddon512
    View Post
    I'm always hesitant when dealing with huge insurance companies and their lawyers
    Why? You understand that the lawyer your insurance company hired to represent you is not the insurer's lawyer, right? He/she is your lawyer and owes ethical duties to you and none to your insurer.

  5. #5
    Join Date
    Oct 2016
    Posts
    2,651

    Default Re: Signing a Declaration for a Settlement

    Let's look at 4 & 13.

    4. That I understand that if I were found to be liable for the incident in this or any other judicial proceeding and a verdict and/or judgment were entered against me, my insurance policy with P. Insurance Company may not cover all of the losses that Mr. Tom Smith, is claiming against me.
    You already know that. You know what they were originally going after was more than your insurance would cover.

    13. That should this matter proceed to litigation, the Superior Court of California would retain jurisdiction, even if the case is dismissed, to enforce the terms of this declaration under CCP Section 664.6 until performance in full of the terms of the settlement.
    CCP Section 664.6 If parties to pending litigation stipulate, in a writing signed by the parties outside the presence of the court or orally before the court, for settlement of the case, or part thereof, the court, upon motion, may enter judgment pursuant to the terms of the settlement. If requested by the parties, the court may retain jurisdiction over the parties to enforce the settlement until performance in full of the terms of the settlement.
    Nothing scary there.

  6. #6

    Default Re: Signing a Declaration for a Settlement

    Quote Quoting PayrolGuy
    View Post
    Nothing scary there.
    Thank you, that does make sense.

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