What Is a Policy Limits Settlement in Georgia?
Short answer: A policy limits settlement is when the at-fault party’s insurer pays the full amount of its liability coverage to settle your claim. It usually happens when your losses are clearly worth more than the policy. In Georgia you can often accept the limits and still pursue your own uninsured motorist (UM) coverage for the rest.
Definition
Every liability policy has a maximum it will pay, such as $25,000 per person. When an insurer “tenders its limits,” it offers everything the policy allows for your claim. Accepting resolves your claim against that insurer, and against its driver to the extent the release says.
How it works in Georgia
- Finding the limits: a liability insurer must disclose the insurer, each insured and the coverage limits, or provide the declarations page, within 60 days of a written request sent by certified mail or statutory overnight delivery that states the nature of your claim under oath (O.C.G.A. § 33-3-28).
- Limited release: you can accept the full limits of one policy and sign a limited release. It releases the settling insurer and releases the driver from personal liability except to the extent other insurance, such as your UM, applies (O.C.G.A. § 33-24-41.1).
- Demands: in motor vehicle cases, a lawyer’s offer to settle made before the defendants answer a lawsuit must meet O.C.G.A. § 9-11-67.1.
- Liens: health plans, hospitals and others may claim part of the money. Many benefit providers must get written notice at least 10 days before the settlement is finalized (O.C.G.A. § 33-24-56.1).
Example
A driver with $50,000 in coverage hits you in Duluth, and your losses are well over $200,000. The insurer tenders its $50,000 limit. With a limited release, you can accept it and continue your claim under your own UM coverage, up to your UM limits.
Why it matters for your claim
- Signing a general release by mistake can end claims you meant to keep.
- One policy may not be the only coverage. Umbrella policies, employer coverage and other responsible parties are worth checking.
- Liens and fees come out of the settlement, so the net amount matters as much as the gross.
Read more: Where your Georgia personal injury settlement goes before you receive your check.
Related terms
Frequently Asked Questions
Should I always accept a policy limits offer?
Not automatically. First check whether other insurance or other responsible parties exist, and make sure the release preserves your UM claim.
Can the insurer pay more than its limits?
It usually will not do so voluntarily. But an insurer that unreasonably rejects a valid offer to settle within its limits can later be responsible for a verdict above them.
How do I find out the other driver’s limits?
Your lawyer can send a written request under O.C.G.A. § 33-3-28. The insurer then has 60 days to respond.
Browse the full Georgia personal injury glossary
Questions about how this applies to your accident? Call 888-BIG-GUNN or request a free case review. There is no fee unless we recover for you.
This is general information about Georgia law, not legal advice for your situation.
