Subrogation Rights and Releasing a Tortfeasor: What You Should Know About UM Coverage and Your Palm Beach County Accident Case: Part III

The injured insured involved in a Lake Worth car accident does not have a duty to the UM carier to bring an action agsint the UM motorist before the statute of limitations expires to rpeserve the UM insurer's right to subrogation.  UM benefits are also not considered collateral source payments, so when the UM carrier provides benefits, the tortfeasor is not entitled to a set-off for the UM payment.

Under Florida statute, an injured person must send written notice of a proposed settlement with the UM motorist by certified or registered mail.  If the insurer authorizes the settlement or fails to respond within 30 days, the injured may execute a release and finalize settlement with the tortfeasor without jeapordizing their UM claim.

If a UM carrier refuses to settle with a tortfeasor, the UM carrier must pay the injured insured, within 30 days, the amount of the written offer from the 3rd party tortfeasor's liability carrier to preserve their right to subrogate against the tortfeasor.