When it comes to Riverside car accidents, California has a fault-based insurance system. In other words, if a negligent driver hits you, that driver—and their insurance company—is responsible for paying for your damages. You do not normally have to seek coverage through your own insurance policy beforehand. One exception to this rule is in the case of an uninsured or underinsured driver.
If you are involved in a hit-and-run accident, the negligent driver may never be identified. Or even if you do know who the driver is, they may not carry enough insurance to fully compensate you. This is where uninsured/underinsured (UM/UIM) coverage kicks in. This is coverage that you purchase as part of your own auto policy. In the event of an accident with an uninsured or underinsured driver, your insurer would then “step into the shoes” of that driver to pay for your damages.
Of course, it is not always that simple. Insurance companies will always protect their own bottom line first, which means they can and often will deny your UM/UIM claim. When that happens, California law requires you to submit the dispute to arbitration. If the arbitrator rules in your favor, you may have a subsequent claim for “bad faith” against the insurer if they deliberately undervalued your claim.
Claimant’s Refusal To Submit to Medical Exam Doomed Arbitration Demand
If you do need to file for arbitration, however, keep in mind there are certain statutory deadlines you need to follow. Failure to do so will result in dismissal of your claim regardless of its merits. And you cannot simply turn around and file a lawsuit against your insurance company if you do not follow the arbitration process.
A recent California appeals court decision, Kazemi v. Farmers Insurance Exchange, offers a cautionary tale. In this case, the claimant was injured in a 2013 car accident. The other driver’s insurance company settled with the claimant for the limits of the policy, which was just $15,000. As the claimant’s damages exceeded that amount, he filed an underinsured motorist claim with his insurer. The insurer offered $10,498. The claimant rejected the offer and demanded arbitration.
The parties continued with settlement talks for the next few years. Eventually, the insurer demanded the claimant submit to an independent medical exam, as was the insurer’s right under California law. The claimant failed to show up for the exam, which led the insurer to obtain a court order. Finally, in 2020, the claimant formally filed for arbitration.
By then, it was too late. California law requires a claimant to file for arbitration within five years of the initial demand. Here, the plaintiff demanded arbitration in 2014 but did not take the necessary steps to initiate arbitration until 2020. And as the appellate court explained, the claimant could not offer any excuse for his delay, particularly given his unexplained refusal to submit to an independent medical examination. As such, he could no longer pursue his UIM claim against the insurer.
Contact a Riverside Car Accident Attorney Today
Dealing with insurance companies following a serious car accident is rarely a pleasant experience.
That is why you should work with an experienced Riverside car accident attorney who can deal with insurers on your behalf and make sure your rights are respected under the law. Contact The JLF Firm today to schedule a consultation.
