No Fault Insurance

What constitutes a "serious injury"?

(1) Death, (2) dismemberment, (3) significant disfigurement, (4) fracture, (5) loss of fetus, (6) permanent loss of bodily organ, (7) permanent consequential limitation on the use of either a limb or a bodily organ, or (8) non-permanent injury which prevents P from performing all of his normal activities for at least 90 days.

Which victims of a car accident are covered?

1. Driver of the insured car (either owner or authorized driver) 2. Passengers in the insured car 3. Pedestrians hit by the insured car

What "bad people" are excepted from recovery?

1. Drunk drivers 2. Drag racers 3. Car thieves or other fleeing felons

What benefits can victims receive under the insurance?

1. Medical expenses 2. Lost wages (80% of actual wages for days P can't work, capped at $2000/mo. for 3 yrs) 3. Miscellaneous expenses ($25/day) Total of these benefits is capped at policy limit.

In what situations is P's negligence claim is preserved?

1. P has greater than "basic economic loss" ($50,000) 2. P has a serious injury

What is No Fault Insurance?

A scheme precluding certain car accident victims from suing for negligence, and instead entitles them to insurance proceeds.

Why is it called "No Fault Insurance"?

Because you can always recover regardless of whether you are guilty of any negligence. Exceptions apply only for certain "bad people."

Does No Fault Insurance apply to property damage?

No, it just applies to personal injuries.

What effect does P's negligence claim have on his insurance benefits?

P still gets the insurance benefits, but those benefits are deducted from his remedy in the negligence suit.