Ruiz & Smart represented a Washington policyholder who was seriously injured in a rear-end collision caused by an underinsured driver. Although the at-fault driver’s insurance quickly tendered its modest liability limits, our client’s damages far exceeded those amounts, triggering coverage under her own underinsured motorist (UIM) policy.
What should have been a straightforward UIM claim instead became a prolonged and adversarial ordeal. From the outset, the insurer failed to conduct a full and fair investigation. Despite receiving extensive medical records and documentation showing significant injuries and future medical needs, the insurer never prepared a reasoned evaluation of the claim or articulated a valuation range. Instead, it went silent for long stretches, offered nothing to resolve the claim, and prematurely forced the insured into arbitration without first communicating any coverage decision.
The insurer also demanded a defense medical examination without explaining why it was necessary, refused to identify what questions remained unanswered, and later suggested it could suppress the examiner’s report if the findings were unfavorable. Even when the client’s treating physician submitted a detailed rebuttal explaining the objective basis for ongoing pain and the need for future care, the insurer declined to meaningfully consider it.
Ruiz & Smart pursued claims for breach of contract, insurance bad faith, and violations of Washington’s Insurance Fair Conduct Act and Consumer Protection Act. Through careful factual development and strategic pressure, we demonstrated that the insurer had abandoned its duty to its own insured—treating her as an adversary rather than honoring the promise of protection the policy was meant to provide.
An arbitrator ultimately confirmed what the insurer had refused to acknowledge all along: the client’s damages vastly exceeded all available policy limits. Only after that ruling did the insurer tender the full UIM benefits it owed—still attempting, improperly, to condition payment on an overbroad release.
he case later resolved on confidential terms, reflecting the seriousness of the insurer’s misconduct and the strength of the evidence developed on our client’s behalf.
This matter stands as a reminder that insurance is supposed to provide peace of mind—not force injured policyholders into years of unnecessary stress and litigation. Ruiz & Smart is proud to hold insurers accountable when they fail to live up to their obligations.