1. SBAND – Young Lawyer’s Section February 26, 2013

2. Overview  Liability  No-fault (PIP)  Uninsured (UM) & Underinsured (UIM)  Collision/Comprehensive  Other Coverages (Road service, etc)  Policy may be broader than statute

3. No-Fault Insurance (PIP) NDCC 26.1-41  Mandatory coverage  Covers all accidents except non-consensual use uninsured vehicle racing or speed contest intentional acts  Must arise out of maintenance, use or operation of vehicle as a vehicle  Covers vehicle occupants & pedestrians Vehicle is primary coverage

4. No-Fault Benefits  $30,000 in total benefits available  Medical expense  Rehab expense  Work/income loss @ 85% up to $150/wk  Replacement service loss @ $15/day  Survivor’s income loss  Funeral expense @ $3500

5. Processing No-Fault Claims  Client must complete application  Client must submit documentation Medical bills Proof of wage loss Disability statements  Benefits overdue if not paid w/in 30 days  Illusory coverage? IME Coordination of benefits  Limitations benefits paid = 2 or 4 years no benefits paid = 4 years after crash

6. Relationship to liability claim  No-fault provides a “sure & certain” remedy (although partial remedy)  Tradeoff is that clients give up right to sue unless meet “serious injury” threshold = $2500 in medicals, permanent disability, death etc.  Liability claim has setoff for no-fault benefits paid

7. Liability  NDCC 26.1-41-02(1) & (2), 39-08-20(1), & 29- 16.1-11(2)(b)  Covers damages sustained to third party because of “Fault” of insured  Policy “follows” the vehicle  ND: minimum limits $25,000/$50,000;also property damage coverage  Who is an “insured”? Named Insured Members of Household Permissive User Employer Vehicle-employee driver

8. Liability  Umbrella or excess e.g. permissive driver’s policy on different vehicle  Typical exclusions or limitations non-permissive use named driver exclusion dropdown limits

9. Liability - Damages  NDCC 32-03.2-04; 32-03-20  Property Damage  Economic loss (wage loss, medical expenses, etc. )  Non-economic loss (pain, suffering, inconvenience, physical impairment, disfigurement, mental anguish, emotional distress, etc.)

10. Uninsured Motorist (UM) NDCC 26.1-40-15.2  Substitutes for no liability insurance  Can’t use both liability & UM off of same vehicle  Must establish tortfeasor is uninsured  Phantom vehicle = physical contact or independent witness  Arbitration vs. litigation

11. Underinsured Motorist (UIM) NDCC 26.1-40-15.3  When liability is not enough for damages  “Difference in limits” vs. “add on” ND “trigger = difference in limits ND amount after trigger = add on MN = add on  Damages after liability amount recovered & no-fault paid

12. UIM Pitfalls  Exhaustion- ND vs. MN Who pays the gap?  Priority of coverage Vehicle first “Extra” UIM (e.g. umbrella)  30 day notice of liability settlement to UIM insurer (substitution of check?)

13. Conflicts of Law  Which law governs? Significant contacts test, with Leflar’s 5 “choice-influencing factors”  Out of state driver in ND crash Policy issued & delivered out state Carrier licensed in ND? Carrier not licensed in ND  Conformity Clause  What about UM/UIM v. liability or PIP

14. Questions?  If any questions, please feel free to contact: Mike Williams or Duane Lillehaug Maring Williams Law Office 800-492-5297 mwilliams@maringlaw.com dlillehaug@maringlaw.com mwilliams@maringlaw.com dlillehaug@maringlaw.com