Plain English Breakdown
Checked against official source text during the last sync.
Rules for Insurance Reimbursements
This act sets rules about when a person can get money back from an accident if their insurance company has already paid some of it.
What This Bill Does
- Creates a new rule that stops people from getting extra money if they've been reimbursed by their insurer for part or all of the damage costs before suing someone.
- Allows insurers to keep their legal right to be repaid first when they pay out claims.
- Permits anyone involved in a lawsuit to show proof of payments made under this rule and use it as an offset against any judgment awarded.
Who It Names or Affects
- People who have insurance for property damage
- Insurance companies that cover property damage claims
- Defendants in civil actions involving property damage
Terms To Know
- Reimbursement
- Money paid back to someone after they've spent it on something.
- Subrogation
- The right of an insurance company to be repaid first when they pay out a claim.
Limits and Unknowns
- Does not specify what happens if the reimbursement is less than the total damage amount.
- Does not address situations where multiple insurers are involved in the same case.