Newps wrote
Nathan Young wrote:

So lets say the pilot has an estate of $1M and the $1M smooth
coverage. Won't the victims just go after both?

Yep.

Well, hold on a sec. If the insurance company offers to settle at
policy limits, the victim has a choice. He can accept the $1M
insurance - a sure thing - but then he CAN'T go after the estate.
That's a condition of settlement.

Or he can go after both - but now the insurance company will defend
the case. He may get nothing. He may get less than $1M. He may get
more than $1M at the jury trial, simply to see it reduced on appeal.

If the case is ironclad (meaning you were very obviously at fault and
the damage is huge) then NO AMOUNT of insurance you can buy will ever
be enough. However, the reality is that in most cases it's not so cut
and dried. That's where a plaintiff is likely to settle for the part
(the insurance) rather than going for the whole.

Because in most cases the plaintiff is represented by a lawyer working
on contingency (few can afford the fees out of pocket, and the ones
who can are not likely to sue in the first place) the plaintiff's
lawyer will almost always recommend a settlement - it's easy money and
a sure thing. Only time he's going to recommend not accepting a
settlement is when he believes that he can win AND collect. And
that's the rub - see my other posts. You can't get blood from a
stone.

The fact is, most owners of airplanes that cost less than six figures
are NOT wealthy. They're just guys with jobs or small businesses, and
after the plane is crashed, the defense lawyer paid, and the house
(which you can't take) paid for, there's simply nothing left to
collect.

Michael