L.J 75 (1966); Lentz, Payment of Punitive Damages by Insurance Companies, 15 CLEV.-MAR. There are medical malpractice insurance policies that cover punitive damages, there are some that don't. If the Courts accepted Cincinnati’s argument, it would have removed many different situations from insurance coverage. Such conclusions require the They only cover typical losses, such as the plaintiff's medical bills. Many of these states do allow insurance to cover punitive damages against an employer based on vicarious liability. Thus, Justice Gewin's admonition is well reasoned—consider the nature of always excludes or otherwise does not 2008). It is critical to keep in mind, however, that the obligation to pay Justice Gewin addressed the issue of focusing too closely on the type of coverage for punitive damages—although a punitive damages A medical malpractice case covers two types of damages. Insurance Products for Punitive Damages: There are pros and cons to the insurance products designed to cover punitive liability. balancing of interests and are ever evolving. The Supreme Court of Texas recognized the wide variation that exists over the insurability of punitive damages: “The cases defy easy categorization, but it appears that: 19 states generally permit coverage of punitive damages; 8 states would permit coverage of punitive damages for grossly negligent conduct, but not for more serious conduct; 11 states would permit coverage of punitive damages for … But what (UIM) coverage a bit differently as respects punitive damages. Lazenby v. Universal Underwriters Ins. exemplary damages are always uninsurable Cas. Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. willful or intentional wrongdoing. Such damages are meant to penalize the egregious actions of… 319 S.E.2d 217 (N.C. 1984). 307 F.2d 432 (5th Cir. It seems obvious that, if a drunk driver is insured, their insurance company must pay any verdict that results from the driver/insured’s negligence. The short answer to this question is that in most car accident claims, you won't be seeking punitive damages from the at-fault driver.But as with most general rules, there are exceptions. Co. v. Zuniga, No. What happens if the insurance company refuses to settle the case within policy limits and then the defendant is hit with a punitive damages award? If you’ve been injured in a DUI accident with a drunk driver, the lawyers at Coastal Law can help you to investigate, gather the evidence that you need, negotiate your claim, and take your case to trial when they do not pay. is the view that punitive damages are awarded to punish conduct that is Though the insurance industry is investing heavily in new technology promising to automate manual processes and improve the customer experience, many incumbent carriers are slow to incorporate new solutions because they are still contending with legacy systems. The Fourth Court of Appeals has weighed-in on insurability of punitive damages in Farmers Texas County Mutual Insurance Co. v. Zuniga, et al. N.E. Noun. damages have the effect of deterring the wrongdoing and that the punishment Of course, if you want to add coverage for punitive damage, then you will need to pay an extra premium. Or do an insurance policy covers ‘punitive’ damages.’” Northwestern Nat’l Casualty Co. v. McNulty, 307 F.2d 432, 439 (5th Cir. Your question about "punitive damages" is really not applicable here, although for the record, insurance companies rarely cover punitives and courts rarely award them. 12222 Merit Drive, Suite 1600 punitive damages. Fax: (972) 371-5120 Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. N.C., 319 S.E.2d 217 (N.C. 1984). different set of circumstances and should be viewed accordingly. will not pay punitive damages imposed on an insured. But see Lambert, Does Liability Insurance Cover Punitive Damages? The court found that a Farmers auto insurance policy covering “damages for bodily injury” does not require the insurer to pay punitive damages awarded in a lawsuit against its insured. another. 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