Exam Simulation for United States Personal Lines Question 39 of 50 Select Your A

Question

Exam Simulation for United States Personal Lines Question 39 of 50 Select Your Answer Quit Stan was seriously injured in an automobile accident 3 years ago when another driver lost control of her vehicle, and struck Stan's vehicle head-on. The other driver was driving without insurance at the time, so Stan's insurer paid for his entire claim through his uninsured motorist coverage. The other driver subsequently inherited $2 million dollars, and Stan sued her for all of his medical bils plus $1 million for pain and suffering and won. What might Stan's insurer do in this case? Subrogate its claim against Stan's settlement to recover what it paid out in the claims process Initiate suit against Stan to recover all losses from the claim as well as a commensurate percentage of the pain and suffering portion of the settlement Raise Stan's premiums due to the claim being added to his client history Invoke its rights of counter-suit against the other driver to recover its losses as well AllB CIDlE IFIG

Explanation / Answer

Uninsured motorist coverage comes in the picture when in an accident the other driver was uninsured and so could not pay for the damages. At that point the insurance company pays for the bills of the driver.

When subsequently he gets the payment and an additional 1$ million from the driver. The insurance company can claim from Stan what it paid out in the claims process.

The answer is A.

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