I have questions regarding repayment of medical expenses to insurance providers in regards to personal injury from a motor vehicle accident. I was told that before disbursement of settlement funds the attorney has a duty to negociate a reduction of any liens against the settlement funds. I was told that a 1/3 reduction is customary. I was also told that there is also a Civil Code 3040 in California where the reduction can be even more. My attorney notified the insurance company that we were going to use the 3040 code section and figured out the amount that we were legally obligated to repay. We received a letter back from the insurance company saying that Code section 3040 did not apply to them. Could someone explain this code section to me and tell me when it does apply and is there any case law that we can use as an example.

Thank you,
Isis

To locate a case, you should ask your attorney to do that as that is part of the attorney's job. As for the insurer, what is customary is not mandatory, that means custom is what is usually done and does not mean that it has to be followed. You need to address your issues with your attorney as they are too specific for a discussion room like this.