Monday, 21 September 2009 16:09
Below are Chuck's comments in response to the St. Pete Times article: Hulk Hogan Sues Over Lawyer Fees...
It has been my experience that most people in Florida are unaware of the fact that if they purchased Bodily Injury Liability coverage under their automobile insurance policy and they are sued by an injured party from an accident that they were involved in, then they are entitled to representation by a defense attorney, chosen and paid for by their insurance company.
The cost of this attorney and the cost of the lawsuit is in excess of the policy limits that the person purchased from their automoblie insurance company.
For example, if a person purchased $100,000.00 in Bodily Injury Liability coverage from their insurance company, as Hulk Hogan (Terry Bollea) had, then their company will provide an attorney to defend them in a lawsuit up to the $100,00.00 for the injured person's damage claim, and will pay for the cost of the attorney and the cost of the lawsuit itself over and above that $100,000.00. So, if the attorney is able to settle the damage case for the $100,000.00 policy limits, and has a bill for $100,000.00 for his/her time into the representation, as well as an additonal $30,000.00 in cost for the litigation, then the insurance company should pay a total of $230,00.00 on their insured's behalf in this example.
If the claim for damages exceeds the coverage purchased by the insured as is alleged in the Hogan case, than the insurance company hires and pays for a defense attorney to defend the insured up to the liability limit of their policy, and the insured is thereafter encouraged to hire personal counsel to protect them and their assets from any excess damages that are awarded to the injured party above the insured's Bodily Injury Liability policy limit.