The Case for GAP Insurance

Most people that buy a car are so happy to have made the purchase that they don't want to think about what could happen if the car is determined to be a total loss in a wreck. Mistakenly, they believe that their insurance will cover it. After all that is why you carry liability coverage, collision coverage, and uninsured motorist property damage coverage, right? What many people fail to consider is will they have enough equity in their car to pay off their car loan in the case it is considered a total loss. You see, in most states, including Washington, you are only entitled to recover the value of your car, not what you owe the bank. What does that mean to you? Well, if you bought that 2008 Escalade for $60,000 plus 6 months ago, you may still owe the bank $55,000. Now, under one of the GM's Red Tag sales that Escalade sells for $49,000. In today's soft car market, you owe the bank $10,000 more than your car is worth. Not a pretty thought, is it? How do you protect against this? Simple. If you buy a new car, or in some cases, a relatively new used car, your insurance company can sell insurance coverage to cover the difference between what your car is worth and what you owe the bank (the GAP). The price is nominal. The peace of mind you derive from having this insurance, is immeasureable in value.

Later,

Rod

Nothing in the Blog should be considered legal advice or to form an attorney client relationship. Readers with legal concerns should contact an attorney who can offer them advice geared toward their particular legal circumstance.

I just got an STD. Now what do I do?

The world has changed. At one time, sexually transmitted diseases (STD’s) were something that could be taken care of with a shot. Today, they can cause lifelong pain and suffering, susceptibility to disease and even death. Sobering thoughts.

Even though we all understand that STDs are a risk in any intimate relationship, we also expect that a sexual partner would have the decency to disclose they have a STD. More often than not, diseases are transmitted knowingly by a partner that selfishly is thinking about their own satisfaction, rather than disclosing the existence of the STD and attempting to take some form of precaution.

Fortunately, for Washington residents, our legislature has recognized this problem and has created a right of action against the person who transmitted the disease. STDs, under this statute are defined as:

"... a bacterial, viral, fungal, or parasitic disease, determined by the board by rule to be sexually transmitted, to be a threat to the public health and welfare, and to be a disease for which a legitimate public interest will be served by providing for regulation and treatment. The board shall designate chancroid, gonorrhea, granuloma inguinale, lymphogranuloma venereum, genital herpes simplex, chlamydia, nongonococcal urethritis (NGU), trachomitis, genital human papilloma virus infection, syphilis, acquired immunodeficiency syndrome (AIDS), and human immunodeficiency virus (HIV) infection as sexually transmitted diseases, and shall consider the recommendations and classifications of the centers for disease control and other nationally recognized medical authorities in designating other diseases as sexually transmitted."

Under this law, a person who is the victim of negligent or intentional transmission of a sexually transmitted disease can hold the wrongdoer accountable in court. In the case of negligent transmission of a STD, they can receive an award of $1,000. In the case of intentional transmission they can receive an award of $10,000. In addition, victims are permitted to recover their attorneys fees, court costs and other damages available under the law. Courts that have interpreted this series of statutes have held that the minimum amounts set forth by the statute are for each sexual act that resulted in STD transmission. In other words, in the case of the intentional transmission of a STD, the amount of damages would be calculated as follows:

(number of sexual acts that resulted in transmission) x $10,000 + attorneys fees + court costs + health care expenses + emotional distress damages = award

Nothing will ever make you whole after contracting a STD. This statute at least allows you to hold the wrongdoer accountable.

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. Individuals with legal problems should consult an attorney who can tailor their advice to your unique circumstances.

Car Buying Resources

I know this Blog is supposed to be about injury law. However, one of my goals in writing this Blog is to give the readers some tips that will, hopefully, avoid them having to use the services of a lawyer.

Routinely, in my practice I see people that suffer injuries that, in part, may have been caused by the type of car they were driving and how it protects its occupants. That is not to say that all cars are unsafe. Testing has revealed that certain cars do a better job of protecting occupants in the advent of a crash. There are two good resources for information on car safety. The first, the National Highway and Traffic Safety Administration (www.nhtsa.gov) which has the safercar website (www.safercar.gov) that provides crash test and recall information. The other is the Insurance Institute for Highway Safety (www.iihs.org) which administers an offset crash test that is supposed to more accurately represent what happens in most head on collisions.

One of the other areas in which I hear a lot of concern expressed by clients is cars that have recurrent problems. While most people are familiar with the reliability ratings given by Consumer Reports, there are other resources available to them. The National Highway and Safety Administration (www.nhtsa.gov) tracks recalls and technical service bulletins on cars. Sometimes these will give you some insight on vehicle reliability. Another resource is the forums on Edmunds.com (www.edmunds.com). In these forums you will find discussions between owners concern such wide ranging topics as price, where to service a car and common problems.

Later,

Rod

Nothing in this Blog should be considered legal advice or form an attorney client relationship. Individuals with legal problems are encouraged to seek legal advice from a legal professional who can tailor her/his advice to your specific legal needs.

10 Tips for Avoiding an Accident

Edmunds.com has a great article that is a must for every driver to read. It is entitled Top 10 Editor's Tips to Prevent a Car Accident. To read the article click here.

Do you really need the Collision Damage Waiver

Every time I rent a car, I get the same question from the clerk at the counter, " Sir, (I get called Sir now, sure sign I'm close to getting my AARP card) would you like the collision damage waiver.  If you get it, it pays ..........."  Politely, I always tell the clerk, "No thank you, my insurance policy covers the use of a rental car."  Occasionally, when I am at the airport with a friend, that is an insurance agent, I hear a loud shriek, "NOOOOOOO!!!!! He doesn't need it!!!"  Personally, I prefer a simple "No Thank You."

The bottom line is that your auto policy does cover rental cars.  In addition, some credit cards provide this coverage if you book your travel through them.  Call your credit card company to find out. That general statement being made there are some caveats that you should keep in mind:

1. If you are renting a moving truck, some companies will cover small trucks but not large trucks. You can save yourself a lot of heartache by making a quick call to your insurance agent.

2. You may not have coverage if you are in a foreign country. If you are traveling outside the United States, (Yes, that means to Canada and Mexico) let your agent know to assure you have coverage in place.

Later, 

Rod

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. If you have a legal problem you are encouraged to consult with an attorney who can provide you with advice tailored to your legal circumstance. 

Document, Document, Document....

It sounds like an overwhelming task but it's not. If you have expenses related to an accident keep track of them. You are going to need it at a later date. That means keep receipts and records of expenses as they are incurred. If you pay for items with cash get a receipt. If you pay with a debit card or credit card, keep your statements and get a receipt. Some of the items you should keep track of include:

1: Your wage loss
2: Your out of pocket expenses
3. Your deductibles
4. Your mileage
5. Your medical expenses
6. Services provided

One of the components of your claim is the economic loss you have experienced. It always lends credibility to your claim if you have receipts for your expenses or have documented items, such as mileage expense, at the time the expenses are incurred. Some people roll their eyes when I tell them this, but let's put yourself in the shoes of the jury that will decide your case or the party against whom you are making the claim. They will not dispute your claim if they are based in fact and carry the aura of credibility. That's why accurate record keeping is necessary. It may save you from having to take your case to court.

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. Legal cases often turn on specific facts. You would be well served to obtain the advice of an experienced attorney who can offer her/his advice that is tailored to your unique legal circumstance.

Forum Selection Clause “Sinks” Cruise Ship Claim

One of the problems with claims against cruise ships is that they are governed by forum selection clauses that identify the court in which claim must be filed in and the time period within which a claim must be made. As a general rule, these contracts tend to require a claim for negligence to be filed within one year of the incident. In years past, cruise ships would identify a court that was out of state, typically Florida, as the forum in which a claim must be filed. Now that Seattlehas more cruise ship business, some cruise lines will designate a Washington court as the forum to address these claims.

Jack Oltman, Bernice Oltman and Susan Oltman filed a lawsuit in the King County Superior Court (the state court) for damages associated with a gastrointestinal illness that Jack and Bernice contracted while on a Holland America cruise. Susan was not on the cruise, but filed a claim alleging loss of consortium which is a loss of the husband and wife relationship.

The cruise ticket, that was given to Jack and Bernice, provided that any suit had to be filed within one year of the time the claim arose and in the United States District Court for Western Washington (the federal court). The only exception to this filing requirement was that, if the federal court did not have authority to hear the matter, then, and only then, could it be heard in a state court.

Unfortunately, the Oltmans waited until the last minute to file their lawsuit. As a result, when they learned that Holland America was going to raise the contractual defense that they filed in the wrong court, it was too late to remedy the problem by filing a claim in the federal court. As a result, the trial judge dismissed all their claims. The Court of Appeals agreed with the trial judge. After losing in the Court of Appeals, the Oltmans asked the Washington Supreme Court to review their case. The Supreme Court agreed that the claims of Jack Oltman and Bernice Oltman should have been filed within one year in the federal court because they were contractually bound to do so. The court, however, did not believe this to be the case as to Jack’s wife, Susan. The court held that since she was not on the cruise and she was not a party to this contract, Mrs. Oltman had the right to independently assert her claim for loss of consortium in the state court, thus reinstating her claim.

Lessons learned.

First, cruise ship cases are a unique breed of animal. Since claims against cruise ships usually require a party to sue in a particular court and within an abbreviated time, care should always be taken when examining a claim of this nature.

Second, if you suspect you have a claim, get in to see a lawyer early in the game. This assures that mistakes like the Oltmans’ are less likely to happen. It also assures that attorneys are able to conduct an investigation while witness memories are fresh and to advise you of steps that you may have to take to preserve your claim.

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. The information provided is general in nature. Nothing can substitute for a consultation with a legal professional who can address your particular legal problem.

PIP Coverage: Why it is Important?

Although we know Gladys Knight had the Pips (sorry, I just couldn't resist that), we don't know if she had PIP coverage, also know as Personal Injury Protection coverage. This is one of the most affordable, yet overlooked products that are sold by your insurance agent.

Personal injury protection benefits, otherwise known as PIP, will cover medical expenses, wage loss, burial expenses and other expenses such as nursing care and domestic help while you recover from an injury sustained in a car accident. It will cover you and the members of your household without regard to whether you were at fault.

Many people feel PIP is either unnecessary because they have medical insurance or they think it is too expensive. Both of these beliefs are incorrect. PIP has become an increasingly important component of your insurance portfolio. One of the most overlooked benefits of PIP coverage is that you don't have to wrestle with co-pays, deductibles and provider limitations while you are recovering from a serious injury.

PIP also provides wage loss coverage. At a time where the majority of households are two-income households, wage protection has become increasingly important. Consider the financial hardship you would experience if one income was lost, even for a month. Furthermore, if you are involved in a serious accident, you may not be able to work for several months. If that happens, you may not only lose your medical coverage, have the loss of one income, and, without PIP coverage, not have the resources to pay for medical care or basic household needs.

There are different levels of PIP coverage available ranging from a $10,000.00 minimum and going up from there. The level of coverage available will vary depending on your insurance company, however, all insurance companies in Washington must offer the $10,000 minimum coverage. In deciding how much coverage to buy, make sure to ask about the wage loss component that accompanies your PIP coverage.Typically, a $10,000.00 PIP coverage will pay you the lesser of $200.00 per week or 85% of your weekly earnings up to $10,000.00. Since the wage benefit under the typical $10,000 PIP policy is inadequate for most people, you should consider PIP coverage that is greater than the $10,000.00 minimum.

In our practice we see many people who suffer severe injuries that take well over a year to resolve and which result in far greater than $10,000.00 in medical expenses and lost wages. Having more coverage does not cost that much more, but will provide you with peace of mind.

Remember that you are not required to have PIP coverage. Our legislature felt that PIP coverage was so important that it required your insurance company to offer it to you. If you do not want the coverage, you must reject it in writing. If you do not reject it in writing, the insurance company must add the coverage but can charge you for it.

Rod's Tips:

Whenever you are involved in an accident, always confirm the insurance coverages you have available. If it does not appear you have PIP coverage ask for proof that you signed a written rejection of coverage. If your insurance company cannot produce a written rejection, they must treat you as if you had PIP coverage at the time of the accident.

Keep in mind that when you are involved in a car accident, your health insurance coverage will pay only after you have exhausted your PIP coverage. The rule of thumb is to submit to PIP first and health insurance later.

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. The information provided is general in nature. Nothing can substitute for a consultation with a legal professional who can address your particular legal problem.