Injured in an Automobile Accident in North Carolina? We Can Help.

North Carolina Rule 414 – Legislated Unfairness

In 2011, the North Carolina legislature passed a law most commonly referred to as North Carolina Rule of Evidence 414, but also referred to as “Billed versus Paid.”  This rule of evidence has had the disastrous effect of creating absolute unfairness to those injured in automobile accidents in North Carolina.  Rule 414 is an evidentiary rule, with the intent to be only applied to matters that go to trial, but liability insurance companies are insisting it be applied in the settlement/negotiation phase of a personal injury matter.  So, you may ask – why is this such a big deal?

Simply, Rule 414 lets insurance companies make offers based on the amount of medical bill balances, and not on what the actual amount of the bill was before it was paid by the injured party, health insurance, or Medicaid, or Medicare.  Previously, the collateral source rule disallowed any mention of what was paid, or not paid at trial.  So now, if you are injured in an automobile accident in North Carolina, and incur medical bills of $100,000.00, and the health insurance that you pay for out of every paycheck pays 80% of it, the insurance company makes an offer based on $20,000.00, not $100,000.00.  Now, if you do not have any health insurance, the insurance company has to make offers based on the full $100,000.00.  Now, you know why the title of this blog is legislated unfairness.  Why should insurance companies be allowed to benefit from something that you pay for out of every paycheck?  The answer is easy, and quite infuriating actually – the North Carolina legislature let them!

We are waiting for some appellate cases to address this unconstitutional unfairness, but in the interim personal injury attorneys are invaluable in terms of offering strategies, and assisting in negotiating with the insurance companies.  Tippens & Zurosky has knowledgeable, experienced attorneys who can fight for your rights during this often long and difficult automobile accident process.  Call us toll-free at 877-372-3580, or at 704-343-0018, for a free consultation.  Let us help you!