A requirement under most Illinois insurance policies is that the possible subrogation rights of the UIM carrier must be protected, or waived by that carrier, before making a settlement on the underlying case. It is incumbent on you, as the lawyer, that you notify the third party carrier of an offer to settle the third party case and get explicit permission from your client's UIM carrier to sign a release in favor of the tortfeasor. Your client's carrier has the option to "match or waive" the amount offered, that is, they can ask that your client not sign a release, keep the claim open, but they must advance the amount offered by the third party carrier within thirty days of receiving your notice. It is my experience that few carriers will ever advance that money, but they must be given the opportunity to do so. And then they can either…Read More
