What is a collateral source rule?

A collateral source rule is a legal doctrine applied in Arizona that states that an injured party cannot be compensated for medical expenses that have already been covered by insurance or any other third-party payment source. In essence, it prevents a plaintiff from collecting twice for the same damages. The rule typically applies to both civil and criminal cases. For instance, if a person is injured in a car accident and the medical bills have been paid in full by their health insurance company, the injured party cannot receive additional compensation for the same medical expenses from the responsible driver. This helps ensure that the driver is not held responsible for twice the amount of damages, as this would be seen as unfair. The collateral source rule is meant to protect injury victims from having to pay for medical expenses out of pocket, as well as family members who have already paid for the bills. It also serves to deter potential defendants from engaging in harmful behavior, as they would be responsible for any resulting damages. The collateral source rule is important to Arizona insurance law, as it helps to protect both injury victims and those responsible from an unfair financial burden. Additionally, the rule reminds those engaging in risky behavior that they are responsible for their actions and the consequences of those actions.

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What is a collateral source rule?

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