For a variety of reasons, I am not a big fan of no-fault insurance. It is bad, bad, bad. And now, if it is possible, it just got worse!
Here is an excerpt of an article: “Insurers that win a no-fault case can collect legal fees from the plaintiff if they rejected a “generous” settlement offer or had a very weak case and recovered nothing at trial. However, the insurer cannot recover fees if the settlement offer was in anyway ambiguous. Attorney Don Hockman believes the decision will “have a chilling effect on legitimate claims because few attorneys are willing to represent clients who stand to lose so much and gain very little.”
Yes, that is right. If you have to sue your insurance company in a no-fault state, you could end up having to pay them back. Since no-fault benefits generally are bad to begin with, this may make it not worth suing them at all!
This is definitely a win for the insurance industry.