Coot's Notice: A Key Element in Underinsured Motorist Settlements

Definition & Meaning

Coot's notice is a formal notification sent by an injured party to their underinsured motorist (UIM) insurance carrier, informing them of a proposed settlement with the at-fault party's insurer. This notice is crucial because it allows the UIM carrier an opportunity to respond within a specified timeframe. If the carrier does not respond within thirty days, the injured party can proceed with the settlement without affecting their potential UIM claim.

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Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) If an individual is injured in a car accident and agrees to a settlement of $20,000 with the at-fault driver's insurance, they must send a Coot's notice to their own UIM insurer. If the UIM insurer does not respond within thirty days, the injured party can proceed with the settlement without jeopardizing their UIM claim.

State-by-state differences

State Key Differences
Kentucky Follows KRS § 304.39-320 for Coot's notice requirements.
California Similar notice requirements, but specific timelines may vary.
Texas Different subrogation laws may affect the process.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Coot's Notice Notification to UIM insurer about a proposed settlement. Specifically relates to underinsured motorist claims.
Subrogation The right of an insurer to pursue a third party for payment. Subrogation occurs after a settlement, while Coot's notice is a pre-settlement requirement.
Release A legal document that relinquishes a right to pursue further claims. A release is executed after settlement, while Coot's notice is about notifying the insurer beforehand.

What to do if this term applies to you

If you are involved in a motor vehicle accident and are considering a settlement with the at-fault party's insurer, it is important to:

  • Notify your underinsured motorist insurer by sending a Coot's notice.
  • Keep track of the thirty-day response period.
  • If you need assistance, consider using US Legal Forms to access templates for the notice and other necessary documents.
  • If your situation is complex, consult with a legal professional for tailored advice.

Quick facts

  • Typical Response Time: 30 days
  • Applicable Jurisdictions: Varies by state
  • Potential Penalties: Loss of rights to UIM claims if notice is not provided

Key takeaways