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For example, if a health insurance policyholder is injured in an accident and the insurer pays $20,000 to cover the medical bills, the insurer may sue to collect that $20,000 from the at-fault party or that party's insurer.
The collateral source rule, which dates from 1854, prohibits the admission in a civil lawsuit of evidence that the victim has already received compensation from a source other than the defendant.
Arkansas' collateral source rule provides that a trial court must ?exclude evidence of payments received by an injured party from sources 'collateral' to ... the wrongdoer, such as private insurance or government benefits....? Bell v.
"The collateral source rule provides, as a general proposition, that a party may recover full compensatory damages from a tortfeasor regardless of the payment of any amount by any independent party (a 'collateral source'), such as an insurance carrier." Bushong v. Park, 837 A.
§ 548.36 (2009). Previously, Minnesota adopted the collateral source rule, meaning a plaintiff may recover damages from a tortfeasor, even if the plaintiff received money or services related to the injury from another source.
The mechanics of this statute are that: (1) amounts paid to a plaintiff from a collateral source can and do reduce the amount of the verdict, and this reduction will be applied by the court following the jury verdict; (2) but in nearly all instances, evidence of payments from collateral sources will not be presented to ...
The collateral source rule prevents the defendant from submitting evidence that your medical bills were covered by insurance. Likewise, the collateral source rule also prevents the defendant from trying to reduce the value of your claim because you received money from a third party.
In general, the Maritime Collateral-Source Rule protects the amount of damages considered recoverable and prevents them from being reduced when the injured party has received compensation from another source other than the defendant.