Pamela was injured in an auto accident by an uninsured driver. Pamela filed a claim with her insurer, American Mutual, for $2,000 under her "uninsured motorist" coverage. American Mutual told her that if she sought that money, her premiums would go "sky high," so Pamela dropped the claim. Later, after speaking with an attorney, Pamela sued. What claim was her attorney likely to make?

Question

Business

Nayeli Payne

30 January, 21:53

Pamela was injured in an auto accident by an uninsured driver. Pamela filed a claim with her insurer, American Mutual, for $2,000 under her "uninsured motorist" coverage. American Mutual told her that if she sought that money, her premiums would go "sky high," so Pamela dropped the claim. Later, after speaking with an attorney, Pamela sued. What claim was her attorney likely to make?

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Answers (1)

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Carla Price · Answer 1

Answer: Option a claim of punitive damages

Explanation:

In this case Pamela was the person who was affected due to the damages caused by the accident. The driver is uninsured and the claim was also failed accordingly. When there is no insurance the punitive damages can be claimed for compensation.

Punitive damages are calculated based on the actual damages that has taken place. The driver has to pay for the damages to the Pamela. If Pamela had to approach American mutual she has to pay high premium for the claim.