The automobile insurance laws of the State of Hawaii have an exception which excludes certain welfare recipients from receiving medical benefits for their auto accident related injuries under a state-provided PIP (no-fault) policy. In the case of Rubin v. Sullivan, 928 F2d 898 (9th Cir. 1991), the federal Ninth Circuit Court of Appeals struck down that exception to Hawaii's PIP (no-fault) law. The Ninth Circuit reasoned that the exception violated the spirit and the intent of the Social Security Act which specifically prohibits an insurance policy from denying medical coverage to an accident victim on the basis that the victim is a welfare recipient. Moreover, the court held that the federal Social Security Act preempts state law to the contrary.
Game Truck Georgia was recently hit with a $4.7 million judgment for injuries arising out of a game of "bubble soccer". But this was after they had pleaded with their insurer to settle those same claims for a pretrial offer of $1 million - which was within their policy limits. Their insurer, Atlantic Specialty Insurance, declined those offers and forced the case to trial. Now the attorneys for Game Truck Georgia are chasing their own insurance company for its bad faith refusal to settle - a refusal which led to the insolvency and desctruction of their business.
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