What is the collateral source rule?

The collateral source rule is a legal concept that applies to accident law in Texas. It protects the rights of injured individuals by ensuring that they are not denied compensation for their injuries just because someone else has already paid for their medical expenses or other losses. The collateral source rule ensures that if an injured party receives compensation from a source other than the responsible party (such as an insurer), it cannot be subtracted from any judgment or settlement the injured party may receive from the responsible party. In other words, the collateral source rule in Texas prevents the responsible party from using the injured person’s insurance or other sources of compensation to reduce their liability for the injury. This means that if the responsible party is found liable for the injury, they must pay the full amount of total damages. The injured party will not get less just because they received money from a different source. The collateral source rule also applies to compensation for lost wages. This means that if a person is unable to work due to their injury, they will still be entitled to the full amount of lost wages, even if they have received compensation from another source such as disability income. This rule helps to ensure that those who are injured due to the negligence of another are not unfairly deprived of their full damages. It also helps to guarantee that those causing injury are held responsible for the full extent of the damage they have caused.

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What is the collateral source rule?

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