What are Resident Relative Claims? The claims asserted by a Spouse or other relatives who share a residence with an insured person. A Resident Relative receives special status in an insurance policies’ language. In some cases, a Resident Relative is automatically insured.
Claim Example
A family called me. Their son, “Jessie” – a young man (16 years old) was badly injured during a single-vehicle roll-over. The driver, Nick, lost control of his vehicle and rolled off Chena Hot Springs Rd. Jessie was not wearing his seatbelt. Nick’s auto insurance company told Jessie’s family: “Jessie’s injuries are Jessie’s own fault. Jessie should have worn a seatbelt. Go away.”
Jessie’s medical and surgical bills totaled more than $129,000. Jessie will live with 60+ years of pain and limited mobility because of this wreck.
Proving Liability
We gathered the police report, visited the scene, spoke with Nick, measured and photographed the pickup truck, located the pickup’s “black box” and performed appropriate legal research. Initially, we confirmed: (1) that Nick was negligent because the Rules of The Road require drivers to stay within their lane unless it is safe to leave it (13 AAC 02.085); and (2) that Nick’s insurance company was only partially correct: Any part of Jessie’s injuries caused by Jessie’s failure to wear a seatbelt were Jessie’s responsibility, not Nick’s. Hutchins v. Schwartz, 724 P.2d 1194, 1199 (Alaska 1986).
Next, we focused on how much of Jessie’s injuries were caused by Jessie not wearing a seatbelt.
We hired an Expert to investigate whether the lack of a seatbelt contributed to Jessie’s injuries. The Expert performed extensive tests. He evaluated damage of Nick’s pickup. The Expert finally concluded: “No. Jessie’s failure to wear a seatbelt in no way caused or made Jessie’s injuries worse.” In a nutshell, there was no connection between Jessie’s failure to wear a seatbelt and Jessie’s injuries is because the roof of the pickup was badly crushed. The roof was so badly crushed, it impacted the pickup’s bench seatback. Indeed, if Jessie had been wearing a seatbelt, he might have died in the Crash.
Resident Relative Claim?
After we put together Jessie’s case, Nick’s insurance company paid Jessie full liability “Policy Limits” of $100,000 under Nick’s auto policy. It also paid Jessie full Underinsured Motorist “Policy Limits” of another $100,000.
Finally, Jessie’s family purchased auto insurance. The family policy paid Jessie an Underinsured Motorist “Policy Limit” of $50,000 as his mother’s Resident Relative. Jessie’s medical bills are paid. The insurance also paid for the vocational rehabilitation Jessie needs.
After more than 30 years, The Merdes Law Firm is closing its doors. It has been our honor and privilege to serve Alaska. Thank you ~ Ward Merdes
Source: Ward Merdes, Alaska Administrative Code, Alaska Case Law
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