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In Minnesota, No Fault is a mandatory automobile coverage. At a minimum each policy provides for 20,000 in medical coverage and 20,000 in wage loss and replacement services, if the bills are found to be reasonable, necessary and related to a motor vehicle accident.

In the past, a number of insurance companies have used adverse medical examinations, delay and denial to keep from paying benefits. Actions, that follow a policyholder paying for their coverage for years. It may be the biggest reason that people get a hold of our office. They just want their medical bills paid.

Remedies include filing arbitration claims that are $10,000 or less, at the time , with the American Arbitration Association. These claims are heard by lawyers that are appointed to serve as arbitrators. If your claim is for more than $10,000, a lawsuit can be filed against your own company. In the past, a No Fault victory in court meant that your benefits would be paid and maybe some additional court costs and interest. Thus, the insurance company knew their downside and in some cases were able to just sit back and take advantage of a risk they could do cost benefit analysis on. It gave them very little reason to negotiate a settlement.

As of August 1st, the Minnesota consumer has been given the chance at a even playing field. Now if the case goes to trial and the judge finds that the suit can include a claim for a good faith violation, a victory can include additional damages of $250,000 and the attorney fess and costs needed to make the additional claim.

This is a victory for the Minnesota consumer, that should get more insureds the benefits they paid for and lead to more fair settlements.

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