It is almost inevitable that you will need to deal with an insurance company to recover compensation for one reason or another. After negotiating a settlement offer, you might wonder if an insurance company can rescind it.
The short answer is yes. A settlement offer is like others in that is can be rescinded prior to being accepted by the other party. However, once you sign a release, the offer is considered accepted and cannot be rescinded. This will release the insurance company from legal liability, preventing you from suing for additional damages later. However, Maryland law allow you to rescind a settlement agreement in certain situations.
If you are wondering if an insurance company can rescind your settlement offer, our Maryland car accident attorneys can help you get the compensation you deserve. For a free case assessment, contact Rice, Murtha & Psoras at (410) 694-7291.
Do Insurance Companies Have the Right to Rescind Settlement Offers in Maryland?
Negotiating with an insurance company after being injured can be incredibly stressful for someone trying to recover from their injuries. Most victims would prefer to settle their cases quickly to recover the compensation they need to see them through these difficult times. Still, they might be unsure whether the insurance company can rescind their settlement offer. Most settlement negotiations involve a back-and-forth between the parties, so the insurance company does have a window to rescind an offer before it is formally accepted. However, once you sign a release absolving the insurance company from litigation, the settlement offer will be considered accepted and binding on all parties.
Settlement offers are like other contract negotiations. That is, an offer is not deemed accepted until an agreement is made and some consideration is exchanged. In the case of settlement offers, the agreement would be a claim payout in exchange for releasing the insurance company from being sued over the incident. If you reject an offer or send the insurance company a counteroffer, the insurance company’s original settlement offer is considered rejected. In most cases, however, an insurance company will not rescind a settlement offer once made.
It is important to note that under Md. Code, Cts. & Jud. Proc. Art. § 5-401.1(b), insurance companies are prohibited from beginning settlement negotiations with an injured individual within 15 days of their injuries. This includes attempting to obtain a signature for a release from liability. An insurance company should only contact you within those first 15 days to acknowledge your claim and provide you with documentation to file with your claim, like proof of loss forms. Our Baltimore car accident attorneys can help ensure your rights are protected while negotiating a settlement on your behalf.
What Happens If I Sign the Insurance Company’s Settlement Offer in Maryland?
In most cases, signing a release accepting an insurance company’s settlement offer for damages ends the matter. When you sign a settlement offer, you agree to accept the compensation being offered, but you also agree to release the insurance company from future legal actions to recover damages. This means that if you end up needing more financial compensation for your injuries, you will need to pay out-of-pocket, as you gave up the right to file a lawsuit after accepting a settlement offer.
Victims can easily undervalue their claims or take an initial settlement offer from an insurance company that is below what the case is worth. While you cannot sue an insurance company for damages after accepting a settlement offer, you might be able to file a claim directly against the party that injured you to recover your remaining damages.
Once accepted, getting out of a settlement offer can be challenging but not impossible. This is why working with our Ocean City car accident attorneys is critical. We can help you determine your options to rescind a settlement offer after signing a release.
Can I Rescind a Settlement Offer After I Have Accepted It in Maryland?
Many victims panic after accepting a settlement offer from an insurance company, only to discover that they settled their case for far too low an amount of compensation to cover their damages fully. Fortunately, Maryland law takes into account the fact that injury victims might feel pressured just after being injured to settle their cases quickly. According to Md. Code, Cts. & Jud. Proc. Art. § 5-401.1(a), victims can rescind an accepted settlement offer within 60 days of signing the release if they signed the release within 30 days of their accident without the assistance of an attorney.
If you meet the requirements above, you can void a settlement agreement by providing the insurance company with written notice of your intention to void the settlement and return any money you received as compensation for signing your release. Once you post your notice and repayment in the mail, your settlement agreement will be considered rescinded. Our Rockville car accident attorneys can review your case to determine if you can void a release you signed for your injuries.
Considerations You Should Make Before Accepting a Settlement Offer in Maryland
Before accepting a settlement offer, you will want to think through the many consequences of that decision. Importantly, you will want to consider your medical expenses and lost wages and what losses you are projected to suffer because of your injuries. If your injuries will require surgery in the future or your ability to work has been significantly affected, your settlement offer should reflect those future costs.
As mentioned above, you can file a lawsuit against an at-fault party in the event your settlement agreement does not cover all of your damages. According to Md. Code, Cts. & Jud. Proc. Art. § 5-401.1(d), you can file a lawsuit against an at-fault party as long as they were not a party to the original settlement offer from the insurance company. If the other person is not specifically identified in your release or their liability was unknown when you signed it, you can pursue damages in court. Our Towson car accident attorneys can help you prepare your lawsuit against the person responsible for your injuries.
Our Maryland Car Accident Attorneys Can Help
If you were recently injured and worried that the insurance company will rescind their settlement offer, our Bel Air car accident attorneys can advise you on what steps to take next. Call Rice, Murtha & Psoras today at (410) 694-7291 for a free case review.