When you're injured in an accident in Montana, the at-fault driver's insurance company is often required to "advance pay" your medical bills and lost wages. Advance pay means you can be reimbursed for certain medical bills and lost wages as you incur them, instead of waiting for a final settlement of your claim. Montana law requires advance payment of these expenses when "liability is reasonably clear" and the costs are directly related to an injury suffered in the accident.
This rule is fairly unique to Montana. It comes from two Montana Supreme Court decisions that protect injured people. In Ridley v. Guaranty National Insurance Company, 286 Mont. 325, 951 P.2d 987 (1997), the Court ruled that an insurance company operating in Montana has a duty to pay an injured person's undisputed medical expenses, up to the limits of its policy, before and without a settlement agreement. Building on that, in DuBray v. Farmers Insurance Exchange, 2001 MT 251, 307 Mont. 134, 36 P.3d 897, the Court held that the insurer must also pay lost wages that are reasonably certain and directly related to its insured's negligence or wrongful act. Expenses for travel to and from doctors' appointments can be covered too. These are often called Ridley payments.
These decisions mean an injured Montanan can take the time to treat their injuries and understand the full extent of them before being pushed into a premature settlement with the insurance company.
Despite these rulings, insurance companies often try to avoid paying. Sometimes they argue that a pre-existing condition, not the accident, caused the need for treatment or the lost work. Other times they simply stop paying without any medical reason. If an insurer wrongfully denies advance payment of medical bills, property damage, or lost wages, it may be violating the Montana Unfair Trade Practices Act.
Remember: when liability is reasonably clear, the injured person is entitled to payment of damages that are not reasonably in dispute, even before the claim is settled. Contact the lawyers at diStefano & Mattingley if you have questions, or to see whether your injuries qualify for advance payment under Montana law.