Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involve?

Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involve?

Shell Casualty Co. insures Bob under a PAP and also insures Ted under a seperate PAP. Bob and Ted were involved in an auto accident when Bob ran a red light and struck Ted'-s car. Shell paid damages to Ted under his collision coverage. Shell then sent Bob a notice of intent to subrogate. Bob denies that he has any liability to Shell. Shell argues that Bob is liable to it for its payment to Ted because the accident resulted from Bob'-s negligence. If Shell sues Bob,who will prevail? A. Bob because an insurer cannot subrogate against its owninsured. B. Bob because he cannnot be liable to Ted for any damages Ted suffered in the accident. C. Shell because Bob is a legally liable third party as to Ted. D. Shell because Bob is not an additional insuredunder Ted'-s auto policy.Read more:|ga|1|Law|Subrogate&-JPKW=subrogate&-JPDC=S&-JPST=&-JPAD=3434608803&-JPAF=txt&-JPCD=20100304&-JPRC=1&-gclid=COGP2IeAo6ECFRUeDQodNxqnyQ#ixzz0m9rMa17e


That's not how it works in the real world.The two adjusters sit down over a cup of coffee, go to their supervisor, and determine fault. Likely, only one adjuster will even be assigned to this claim. Bob's property damage would pay out to Ted, with no deductible for Ted, if that's the way the state laws go.An insurer CAN subrogate against an insured, if they're doing it on behalf of ANOTHER insured. Why in the world do you think Bob cannot be held liable to Ted?Shell will pay Ted, under Bob's coverage. Period. That's how it works.


Since Shell paid Ted, they stand in his shoes and have a right to seek a recovery against the at fault party (tortfeasor is the technical word) which in this case is Bob. Since Bob has insurance any liability for the accident would be covered by that policy so they would pay on Bob's behalf.However, since Shell insures both Bob and Ted should they elect to sue Bob to try and recover the damages they paid to Ted, they would be obligated to defend Bob in the lawsuit and pay any award or verdict that may be entered against Bob.Since Shell would be both pursuing the recovery and paying on behalf of Bob, they would almost certainly never pursue their own insured. The only time this would be even considered as a course of action would be if the damages paid to Ted exceeded the Bob's policy limits and Bob had assets to pay the amount of damages that were over the policy limits.A is wrong because an insurer can subrogate against their own insured, they just cannot subrogate against the insured they paid the claim to. (They couldn't sue Ted, for instance, to recover some of the money they paid him if they determined he was partially at fault for the accident).B is wrong and makes no sense because the premise of your question was that Bob was at fault for the accidentC is correct, although as outlined above they would never sue Bob because they would be paying themselves back for the damages Bob owes to TedD is wrong and makes no sense as the question of additional insured status is not relevant to the issue raised in the question(20 years claims veteran with the scars to prove it)



Popular Q&A

How can I get Safe auto to give me the money I am entitled to?
Well, they don't PAY blue book value. They pay ACTUAL CASH VALUE. Check here: for what a private party sale value for your car is.If this isn't your insurance company, you can always file the claim with your insurance company, but they'll likey pay around the same amount.Your...

What are some laws that are Different in Texas than California?
Both are community property states (husband and wife split all income 50/50). No income tax in Texas (yay)! Yes, they base your auto insurance partly off your credit, but I thought that was nationwide. You are supposed to change lanes (to the left) when possible to avoid emergency vehicles...

Advice moving out when turning 18?
Stay at home as long as you can stand it.Offer to pay them $100/mn rent if they want you out.Sack away as much money as you possible can.You want to have several thousand dollars in the bank at all times if you can help it.Taking off or getting kicked out at 18yo without a penny to your name...

I need liability insurance for a small taxi company in NJ. Anyone have any recommendations?
Typically, the rates for taxi cabs IS pretty high. I insure several taxi accounts in Texas. With you starting a "new venture" you won't have any loss runs or transit logs to show for evidence, so it will be higher than if you had 3-5 years of experience. Remember that the rates in a smaller...

Would car insurance be cheaper in Tennessee?
Car insurance as a lot to do with where your live, and living in a big city is the most expensive. If you lived in a small town in TN, that's why your insurance was considerably less. Also, is this the same car, or do you have a newer model which has higher insurance. Another factor in the...