Forums

If I were ACME, unless there is a statute or company policy requiring subro to be paid pro-rata, I would pay the ACV of Mrs. Smith's claim and send a letter to the insured advisng them of the possibility the loss may exceed the policy limt so they can act accordingly. Who knows, ACME may never receive a subro demand from the owner of the street light. My thought: first come - first serve.

That's basically what I did. One of the problems I have in the Los Angeles area is nobody knows which police department responded, which government agency is responsible etc.

I went on the internet and found the Los Angeles Bureau of Street Lighting, which has a complaint form for street lights that aren't working. I filled out the form, giving them the closest intersection, and asking for a copy of their bill for the repairs. Lo and behold, a day or two later, I got the bill and forwarded it to "Acme" who then made an offer to settle with my carrier.

But I have a lot of questions about this- what if the city never did a bill? Does Acme have the right to wait forever and not pay? Can the city's potential claim be estimated, and a successful suit made in small claims (or real court?)

If an estimate was made for the MOST the light could cost was prepared, and then prorated with my carriers claim, would that then be an "undisputed" amount that Acme would be obligated to pay?

Which brings up another issue that I've never really seen addressed. We know that California insurance companies have a duty to follow Fair Claims Practices even when dealing with 3rd party claimants, but what about dealing with other insurance companies, including other insurance companies that are at least partly representing third party claimants (trying to collect the victims deductible)

I don't think arbitration works because there is no contract between my principal and Acme.

Maybe some sort of "interpleader" court filing would be required- "we can't get paid because there is a lack of agreement between two other parties..."

Steve- good point about demanding interest, I didn't think of that. Does that work?