Settlement Agreement Review Guide

Summary

A settlement agreement should clearly outline terms, obligations, confidentiality, and dispute resolution. A subrogation clause allows an insurer to claim rights against third parties responsible for a loss. Waiving rights of exemption means giving up legal protections on your property for reimbursement claims. Consider consulting a lawyer to review the agreement, especially if concerned about waiving property rights or holding recovered monies in trust for the insurer.

Full Conversation

I have a settlement agreement. I want you to read it and tell me if its acceptable
Hi ****! I can't review or evaluate documents directly, but I can provide general guidance. In Washington, a settlement agreement should include:
- Clear terms of the agreement.
- Obligations of each party.
- Any confidentiality clauses.
- How disputes will be resolved.
Is there a specific part of the agreement you're unsure about?
yes I will paste it. I want you to explain the subrogation clause to me
A subrogation clause allows one party (usually an insurer) to step into the shoes of another party to claim their rights and remedies. In Washington, this typically means:
- The insurer can pursue a third party that caused the loss to the insured.
- It prevents double recovery for the insured.
Is there any specific language in the clause you need help understanding?
And further: In consideration of such payment, the undersigned, for herself/himself personally and in her/his capacity, as designated below, agrees to take, through any representative designated by Nationwide, such action as may be necessary or appropriate to recover the damages suffered by the undersigned and said minor or estate from any person or persons, organization, association, or corporation other than Nationwide who or which may be legally liable
The clause you provided essentially means:
- You agree to help Nationwide recover damages from third parties responsible for the loss.
- You must hold any recovered money in trust for Nationwide.
- You can keep any amount recovered that exceeds what Nationwide paid you, after deducting expenses.
If you have specific concerns or another part of the clause you'd like clarified, let me know!
hereby waiving any and all rights of exemption, both as to real and personal property, to which the undersigned may be enprompted by the laws of any state as against such claims for reimbursement or indemnity.
The phrase "hereby waiving any and all rights of exemption, both as to real and personal property, to which the undersigned may be enprompted by the laws of any state as against such claims for reimbursement or indemnity" means:
- You are giving up any legal protections that might prevent Nationwide from collecting the reimbursement or indemnity from your assets, both real and personal property.
Do you have questions on how this might affect you personally?
yes should this be struck. It seems bad
It does sound like you're concerned about waiving rights to your own property.
- Removing this clause could potentially protect your assets.
- Consider consulting a lawyer to review the entire agreement to ensure your interests are protected.
If you need more details or help, let me know!
hold any monies recovered from such person or persons, organization, association, or corporation as a result (of judgment or as a result of settlement with or without litigation, in trust for Nationwide to be paid to Nationwide immediately upon recovery thereof;)
The phrase "hold any monies recovered from such person or persons, organization, association, or corporation as a result (of judgment or as a result of settlement with or without litigation, in trust for Nationwide to be paid to Nationwide immediately upon recovery thereof;)" means that any money you recover from third parties must be held in trust and paid to Nationwide right away.
Would you like more information on how this could impact you or any other part of the agreement?