When you’ve been injured in an accident and someone else is at fault, the process of getting compensated can be complex. Insurance companies, medical providers, and even your own health insurer may have a financial stake in your recovery. One primary legal concept that often comes into play is the "made whole" doctrine under Arkansas law. At Reeves Law Firm, we believe it’s critical for injury victims in Arkansas to understand how this principle may affect their settlement or judgment.
What Is the "Made Whole" Doctrine?
The "made whole" doctrine is a common law principle designed to protect injured individuals from having to reimburse an insurance company, known as subrogation, until they have been fully compensated—or "made whole"—for their losses. See our Article titled “Explanation of Subrogation in Arkansas” for more information on this concept.
In Arkansas, the doctrine generally means:
You don’t have to pay back your insurance company until you’ve been fully compensated for all your damages, including medical bills, lost wages, pain and suffering, and other losses.
This doctrine can be especially important when the at-fault party has limited insurance or assets. If your total damages are $100,000 but you only recover $50,000, the made whole doctrine could shield you from having to reimburse your insurer out of that partial recovery.
How Does This Work in Practice in Arkansas?
Arkansas courts have upheld the made whole doctrine, particularly in cases involving health insurance subrogation. However, whether the doctrine applies can depend on the specific wording of the insurance contract or policy. Some insurers try to "contract around" the doctrine by including language that allows them to assert subrogation rights regardless of whether the insured has been made whole.
That’s why it’s essential to have a skilled attorney review your policy and fight to protect your rights.
Can the Doctrine Be Waived?
Yes-contract terms can override the made whole doctrine. Arkansas courts have held that if an insurance policy clearly states that subrogation applies even if the insured has not been made whole, those terms may be enforceable. Courts will scrutinize these provisions to determine whether they are clear, unambiguous, and legally valid.
Why This Matters for Injury Victims
If you’ve been injured in Arkansas due to someone else’s negligence and are facing claims from your insurer for reimbursement, the made whole doctrine could help you keep more of your recovery. Unfortunately, insurers often assert subrogation rights aggressively- sometimes without regard to whether you’ve actually been made whole.
At Reeves Law Firm, we work to ensure that accident victims in Arkansas receive fair treatment. We review insurance contracts, negotiate with insurers, and fight to enforce the made whole doctrine when appropriate.
Understanding your rights under the made whole doctrine and the concept of subrogation can significantly impact how much compensation you ultimately take home after an injury. Don’t let insurers take more than they’re entitled to.
If you or a loved one has been injured and you’re facing a subrogation claim, contact Reeves Law Firm today. We’re here to protect your recovery and advocate for your best interests every step of the way.
Located in Batesville, Melbourne, and Heber Springs, Arkansas, and serving all of Arkansas, Reeves Law Firm stands ready to handle any civil, estate, family law, guardianship, personal injury, probate, or any other litigation matters that may arise.
Reeves Law Firm primarily serves Independence County (Batesville), Jackson County (Newport), Sharp County (Ash Flat, Highland, Cherokee Village), Lawrence County (Walnut Ridge), Cleburne County (Heber Springs, Greers Ferry, Fairfield Bay), Izard County (Melbourne), Stone County (Mountain View), White County (Searcy), and Baxter County (Mountain Home).
Give us a call in Batesville, Arkansas, at (870) 793-0021
Give us a call in Heber Springs, Arkansas, at (501) 302-8383
Give us a call in Melbourne, Arkansas, at (870) 291-9374
Attorneys in Arkansas – Expect Professional. Expect Results.