ASK THE LAWYER Can other insurance company treat someone unfairly?

Q My wife and I were injured in a crash and our car has required a lot of repair. The other party is at fault, but his insurance company is doing whatever it can to wear us out, and to pay as little as possible. Is this allowed?

A The insurance company for the other driver is required to follow the law and adhere to its contract. The company’s first duty should be to its insured, and the company is at risk if it leaves him or her vulnerable to personal liability. In addition, there are certain steps the insurer is supposed to follow. But there is a real problem: Finding a viable basis to successfully sue the company for bad faith is very difficult; some would say it’s virtually impossible. After all, you do not have a contract with that carrier. And let’s be real: The insurer is seeking to make a profit.

The strategy of stonewalling is not uncommon. The goal is to wear you down. Many fall prey to this tactic. So, do you have a lawyer assisting you and your wife? If not, I suggest that you retain qualified counsel and let your lawyer deal with the gnarly insurance company. If necessary, a lawsuit against the other driver may be advisable.

Q I was hurt in an automobile accident. The other party admitted liability. We are settling now and the insurance company sent me a printed release. It has me giving up all claims, known and unknown, and I am required to sign it to get the settlement check. Why isn’t the other driver also signing?

A The other party has admitted liability and is not making any claims, right? What is there for that party to thereby release? That said, if you still have qualms about signing a one-party release (i.e., only you sign to release the other side), then find out if you can get their insured added to the release for signature, or consult with qualified counsel to assess the matter.

Department on Insurance

The California Department of Insurance may be able to assist you, in some instances, with a bad-acting insurance company. Type “Getting Help — California Department of Insurance” in your web browser to read online about what is available.

Ron Sokol has been a practicing attorney for more than 35 years, and has also served many times as a judge pro tem, mediator, and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.