In New Mexico, all motorists are required to obtain a certain amount of car insurance. If a driver causes a New Mexico car accident, and others are injured as a result, the insurance company provides the necessary compensation to the injury victims. A recent case discusses what happens when an insurance company goes out of business before an injury victim’s’ claim is paid.
The Facts of the Case
The plaintiff was the estate of a man who was killed in a truck accident when a pair of tires came loose from an oncoming logging truck and crashed into his vehicle. The impact from the tires colliding with the man’s truck caused the truck’s front axle to snap. The driver then lost control of the truck, crossed into oncoming traffic, and collided head-on with another large truck.
The estate of the deceased truck driver filed a claim against several parties, including the company that insured the logging truck. That policy provided coverage up to $1,000,000. The estate settled the lawsuit for $800,000, and it was able to obtain roughly $377,000. However, during the pendency of the claim against the logging truck’s insurance company, the company became insolvent and could no longer pay out on any of the pending claims.