When an insurance company enters into a contract with a policy holder, the contract is a legally-binding obligation of the insurance company to make payment in the event there is a “covered loss.”  A “covered loss” simply means the type of losses that are specified in the insurance policy, such as automobile damage and injuries that are sustained in an auto accident. Under state law, insurance companies must pay damages for a covered loss to the insured within a reasonable time frame.  While insurance companies may ask for documentation to substantiate a claim, and otherwise investigate a claim, they must…

In a previous blog, I discussed how loss of income benefits are calculated.  In general, it’s up to judge or jury to determine how much a person killed would have earned over the remainder of their life, in order to determine the amount of money owed to the survivors.  This article discusses a related matter – the time value of money for lost income. The time value of money is a basic financial principal that money to be paid in the future is worth less than money paid today.  For instance, most of us would rather receive $1,000 today than…

The emotional impact caused by the death of a loved one due to the actions of others can be devastating.  Although nothing can bring back the decedent, juries can (and do) award damages for the emotional impact suffered by the loved ones left behind (see:  Types of Damages and Liability that May be Compensated  ). In addition to compensation for the emotional impact and other personal losses, families of the decedent may also be entitled to compensation for lost wages or income that otherwise would have been earned by the decedent.  Here, I’ll describe some of the factors that judges…

Another motorist hits your car; perhaps after failing to stop at a stop sign, or while speeding through an intersection.  It’s clear that the accident is completely their fault, right? Not always.  Often there are factors that contribute to cause an accident in addition to the inattention of the other driver, such as road maintenance and design issues.  Maintenance and design issues can range from untended potholes and other physical aspects of the road itself, to obstructed signage, and improperly designed and constructed intersections. With most roads, there is usually a governmental entity (such as the city, county, or state)…

Yesterday the U.S. Consumer Product Safety Commission, in cooperation with the listed  manufacturer,  issued a voluntary recall on Girls' Hooded Zip Jackets and Vest Sets.  The jackets and vest sets are manufactured by Splendid of Los Angeles, CA and can pose a strangulation or entrapment hazard to children.  If you have purchased or have received one of these items as a gift, both the company and the U.S.C.S.P.C. recommend immediately removing the drawstring from the hood of the garment and contacting the manufacturer for a full refund. Specifically, the recall notice states in part the following: Girls’ Hooded Zip Jacket and Vest Sets with Drawstrings Recalled By…