After your injury, you found that you had insurmountable medical bills in addition to auto repair costs and lost wages. You will have to rely on a settlement or an award to cover your many damages. However, many insurance providers try to recover their payments from the money that injured people receive.
This is called subrogation. While it is legal in most states, North Carolina has very complex laws that regulate it. If you are worried that your insurance provider will try to collect a portion of your settlement or award, read on to learn how our state’s anti-subrogation laws will affect you.
North Carolina and subrogation: what to know
Subrogation is a legal principle that allows an insurance provider to take money out of a client’s personal injury settlement or award to cover the payments it has made. For example, say that your health insurance provider pays for your hospital bills and you later receive a personal injury settlement. Subrogation would allow your health insurer to claim a portion of your settlement as repayment.
However, North Carolina prohibits subrogation. Our anti-subrogation laws mean that insurance providers cannot touch your personal settlement or award after an accident. These laws are critical in protecting the rights of injured people against insurance companies. Without anti-subrogation laws, you would stand to lose a substantial chunk of your compensation.
Insurers do not always play fair
With that said, insurance companies are not always known for playing fair with their policyholders. Insurers have ways of trying to recover their payments. They may even try to avoid paying the compensation that you deserve in the first place.
Though our state has anti-subrogation laws in place to protect your rights, it is also important to stand up for yourself proactively. Many injured people choose to consider their legal options to ensure that they have full access to their rights when it comes to insurance companies and personal injury settlements.