YOU’VE SETTLED YOUR CLAIM WITHOUT A LAWYER. NOW WHAT?

Hello again everyone. The weather today got me thinking about how slick and dangerous the roads are today (July 18, 2024). There have probably been a lot of crashes today. This means the insurance companies will be busy trying to settle lots of claims on the cheap before you decide it is in your best interest to discuss your rights and options with an attorney.

This has been happening more and more over the past few years. Insurance companies are making very quick offers wherein the adjuster is offering a few thousand dollars and promising “we will also pay up to $5,000 in medical bills incurred in the next 60 day so long as the treatment is related to injuries from the crash.” At first blush this may sound tempting. But, rarely are things what the seem at first blush.

The truth is most people very likely will not know how injured you are in the first 60 days of your crash. Nobody knows how much in medical treatment is necessary or the severity of injuries and how those injuries will limit day to day activities, work activities, and enjoyment of life. This lack of knowledge can be devastating because it might be tempting to take the $2,500 that is offered plus the promise to $5,000 in medical treatment.

So, the settlement agreement is signed. A few weeks goes by and the realization sets in that the injuries are far worse than originally thought. That $5,000 in treatment isn’t even close to covering what you need. The “kicking of self” sets in for having believed the insurance company was trying to “do a solid” by settling this claim without consulting a pesky personal injury lawyer. If only there was something that could be done.

Fortunately, there is! Our legislature in 2019 enacted Nevada Revised Statute 10.185. This statute allows you settlement agreements to be set aside if certain conditions a met. If you are not represented by an attorney and the insurance company settles with you within 30 days of your crash, you have 60 days to undue the settlement. You need to sign a notice telling the insurance company that you are electing to void the release. This signed notice must be sent to the insurance company within 10 days of signing the notice. In addition, within that 10 days of signing the notice you must also send back any money the insurance company has paid to you (and likely your doctors). So, for example:

– Crash occurs on July 1;
– Insurance company offers you a settlement and your accept it at some point in time within 30 days of July 1 (for this example that is July 31)
– You are not represented by an attorney when you accept and sign the settlement agreement;
– You have until August 30 to sign a written disclosure voiding the settlement AND send back any money you received.
– Let’ say you sign the disclosure on August 10. You have until August 20 to send the written disclosure AND the money back (again, once you sign the disclosure you only have 10 days to send it and the money back).

Confusing- a bit. But, it does offer protection from an insurance company doing what they generally do best which is taking advantage of you (something our legislature must have been keenly aware of when passing this law).

I have had a couple of instances where this has happened- a potential client comes to me and tells me they already settled and ask if there is anything I can do. Based on the timing of when they get to me after the have been tricked into settling the answer is a resounding yes. This said, if you are seeking representation and have settled your claim let your attorney know so he or she can take the proper steps to get it set aside for you- assuming you are still in the time frame to do so.

Don’t let the insurance companies take advantage of you. If you are injured in a crash, consult a lawyer. Know your rights. Don’t be tricked into making what could be a life long and catastrophic mistake which deprives you of your ability to get help.

Until next time, stay safe.