You’re Insured, Right?

Imagine you are driving down a divided freeway late at night.  A truck going the opposite direction hits a large object (a 400 pound dual wheel assembly) on the highway that flies across the median into your path. You can’t avoid the object, you hit it, and you suffer serious injuries. When you get out of the hospital with all of your bills, you discover that the object on the highway was left there after it fell from an unknown vehicle. No worries, your auto insurance policy covers you, right?

Not so fast, says the insurance company. Your policy protects you against hit and run drivers, but in your case, the driver ran, and then you were hit.  So, American Family argues, you shouldn’t be covered.  In Tomson v. American Family Mutual, the Milwaukee trial court agreed, and dismissed the Tomsons’ claim against American Family.  The Court of Appeals reversed that decision and sent the case back for trial.  The results of that trial won’t be known for awhile.

I suspect that most people buy auto insurance expecting that they will be protected against perils of the road, unless they intentionally cause their own loss.  Insurance companies don’t see it that way.  An insurance policy is just a contract with a company that agrees to pay you something under certain very specific circumstances, if you pay the premium when due.  If the company can avoid liability by claiming that you are not covered, it is likely that it will do so.  More profit for them.   In this case, the plaintiff was saved by a Wisconsin law, created by the legislature that requires the insurance company to protect you in minimal ways. To be safe, you should read your policy carefully.  No time?  Too confusing? Too much gobbledygook?  Well, then you take your chances.  Or, ask your lawyer, that’s what we’re for.   – Dana Brooks

Juror Appreciation Month

How was your Juror Appreciation Month?  It was in September, but don’t fret if it wasn’t on your calendar; Wisconsin Supreme Court Chief Justice Abrahamson only initiated it in 2008.  There are no parades to attend, no feasts to prepare, but it’s a reminder of the important right to a jury trial.  A right the Chief describes as, “a fundamental component of American and Wisconsin justice systems.”

Most attorneys thank jurors for their service when we are in front of a jury in court.  But sometimes jurors report to the court house and don’t even see the inside of the courtroom.  Either way, reporting for jury duty is an important part of our court system that serves every citizen in our community in some way.  If you fail to report, the court may fine you or find you in contempt.  Avoid that trouble and report for jury duty, which is often an interesting experience.

And we really should say thank you more often.  So, thank you!  Every month should be Juror Appreciation Month, especially if we decide to have a feast to celebrate.   – Jennifer A. Moeller

Debit Card Overdraft Protection? Watch out!

I recently reviewed a news article about someone who acquired a debit card to access his checking account for the purposes of “convenience and safety”, as the bank advertised. One of the features offered was “free overdraft protection”.  Several days after making a deposit, he made four purchases, totaling less than $12.00, from the account.  He thought he had money, but the bank had placed a “hold” on his deposit to wait until the check cleared.  His deposit was considered “uncollected funds”, so no money was available for his purchases – and he was charged $34 for “overdraft protection”!  (The only free part was the absence of a monthly fee for having the service available.)

Banks and credit unions have long pitched debit cards as a convenient and prudent way to buy. But a hidden risk is included as more financial institutions allow automatic overdrafts on the account.  Instead of refusing a transaction when there are no available funds to cover the transaction, they allow a customer to exceed their available balance – FOR A PRICE.  Banks are expected to earn more than $27 BILLION dollars this year from this overdraft “protection” service.

Since debit cards have become popular, you are often urged to use the card instead of writing a check.  That means, you typically don’t write down the transaction as you would with a check and you may lose track of your account balance.  Suddenly, you are overdrawn and the bank is there with a stiff fee to cover the difference.  The fee you pay is far larger than you might expect.

So be very careful with your debit card if you have one.  Make sure you ask about hidden fees or charges if you spend more than you have on account.  If you don’t understand the rules, ask your lawyer.  That’s what they’re for.

Steve Kase