Navigating the Maze of North Dakota Motor Vehicle Insurance

February 4, 2018 | Author: Anonymous | Category: Engineering & Technology, Mechanical Engineering, Stress
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SBAND – Young Lawyer’s Section February 26, 2013

Overview Liability  No-fault (PIP)  Uninsured (UM) & Underinsured (UIM)  Collision/Comprehensive  Other Coverages (Road service, etc)  Policy may be broader than statute 

No-Fault Insurance (PIP) NDCC 26.1-41 Mandatory coverage  Covers all accidents except non-consensual use uninsured vehicle racing or speed contest intentional acts  Must arise out of maintenance, use or operation of vehicle as a vehicle  Covers vehicle occupants & pedestrians Vehicle is primary coverage 

No-Fault Benefits $30,000 in total benefits available  Medical expense  Rehab expense  Work/income loss @ 85% up to $150/wk  Replacement service loss @ $15/day  Survivor’s income loss  Funeral expense @ $3500 

Processing No-Fault Claims  

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Client must complete application Client must submit documentation Medical bills Proof of wage loss Disability statements Benefits overdue if not paid w/in 30 days Illusory coverage? IME Coordination of benefits Limitations benefits paid = 2 or 4 years no benefits paid = 4 years after crash

Relationship to liability claim No-fault provides a “sure & certain” remedy (although partial remedy)  Tradeoff is that clients give up right to sue unless meet “serious injury” threshold = $2500 in medicals, permanent disability, death etc.  Liability claim has setoff for no-fault benefits paid 

Liability  

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NDCC 26.1-41-02(1) & (2), 39-08-20(1), & 2916.1-11(2)(b) Covers damages sustained to third party because of “Fault” of insured Policy “follows” the vehicle ND: minimum limits $25,000/$50,000; also property damage coverage Who is an “insured”? Named Insured Members of Household Permissive User Employer Vehicle-employee driver

Liability Umbrella or excess e.g. permissive driver’s policy on different vehicle  Typical exclusions or limitations non-permissive use named driver exclusion dropdown limits 

Liability - Damages NDCC 32-03.2-04; 32-03-20  Property Damage  Economic loss (wage loss, medical expenses, etc. )  Non-economic loss (pain, suffering, inconvenience, physical impairment, disfigurement, mental anguish, emotional distress, etc.) 

Uninsured Motorist (UM) NDCC 26.1-40-15.2 Substitutes for no liability insurance  Can’t use both liability & UM off of same vehicle  Must establish tortfeasor is uninsured  Phantom vehicle = physical contact or independent witness  Arbitration vs. litigation 

Underinsured Motorist (UIM) NDCC 26.1-40-15.3 When liability is not enough for damages  “Difference in limits” vs. “add on” ND “trigger = difference in limits ND amount after trigger = add on MN = add on  Damages after liability amount recovered & no-fault paid 

UIM Pitfalls Exhaustion- ND vs. MN Who pays the gap?  Priority of coverage Vehicle first “Extra” UIM (e.g. umbrella)  30 day notice of liability settlement to UIM insurer (substitution of check?) 

Conflicts of Law Which law governs? Significant contacts test, with Leflar’s 5 “choice-influencing factors”  Out of state driver in ND crash Policy issued & delivered out state Carrier licensed in ND? Carrier not licensed in ND  Conformity Clause  What about UM/UIM v. liability or PIP 

Questions? 

If any questions, please feel free to contact: Mike Williams or Duane Lillehaug Maring Williams Law Office 800-492-5297 [email protected] [email protected]

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