They are privy to the extent of the claimants injuries whereas you are not.

Should i disclose my insurance limits. It is in your interest to disclose your policy limits. Effective January 1 2020 insurers writing commercial or personal auto policies must disclose insurance policies to their insureds and reveal the liability policy limits to third-party claimants. There is no duty to disclose limits outside of the litigation context although an insurers refusal to do so could give rise to a bad faith claim by the policy holder but since your situation is apparently in litigation thats an irrelevant point as is the regulation that requires the insurer to obtain permission from the insured for the disclosure.

So your insurance company is asking for that permission so it can comply with the law. The number of years that you need to disclose depends on your understanding of when you should have told HMRC about getting this income or gain. In litigation in other words when you are sued your insurance limits are no longer privileged.

Disclosure of the policy limits does not mean that your insurance company will pay the limits to settle the claim but it may prevent you from being sued. If they are ringing alarms then follow their lead. The mere filing of the lawsuit after a motor vehicle accident alleging you were negligent lets the.

The other side the Plaintiff is entitled to those limits. If the medical bills alone exceed your liability policy limit you insurance is probably going to offer the policy limit to the other attorney eventually. Certain courts have held that that in fact is bad faith on the part of insurance companies.

But there is an exception. I tend to advise insureds to disclose in a catastrophic accident where their limits may not be adequate. If youre making a voluntary disclosure youll know.

There is a general rule that if you reasonably attempt to settle a case for an amount at or within the policy limits of the culpable party the insurance company must evaluate the demand with the motive of protecting the interest of the insured not in the insurance companys own interest. Your insurance company is obligated to attempt to settle the claim within the policy limits to protect you from an excess judgment. There is some case law that tells insurance companies that if they dont disclose the policy limits theres no way for the plaintiff the claimant you to negotiate in good faith so it requires a lawsuit.