Can the insurance company ask for all your tax information to settle a lost wages claim?
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Can the insurance company ask for all your tax information to settle a lost wages claim?
I was hit by a vehicle while I was driving my semi-truck 6 weeks ago. Now it has been in the body shop over a month. I’m trying to get compensation for my lost wages but the insurance company is just asking for so many documents. I provided revenue reports from 2 months last year and my 1099 form with my employee compensation.
Asked on November 13, 2011 under Insurance Law, New Mexico
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Of course they can ask for it. They will only provide in a settlement what they consider a fair or appropriate amount. That means not basing the settlement on, for example, 2 months of data, which could eaily represent peak earnings and thus not be representative of your average or sustained earning potential--which is what they will compensate you based on. For example, say that you earned $48,000 last year--but you earned $24,000 of it in just 2 months, and the other $24,000 over the other 10 months. Basing lost wages compensation on those two peak months would have them overestimate your income and overcompensate you, by compensating you based on an assumed income of $144,000 per year. Similarly, they can't rely just on a 1099, since that would not pick up your income from other sources.
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