When a person is seriously injured in a motor vehicle accident, the responsible insurance company may face conflicting obligations under Georgia law. On the one hand, the insurer must settle a valid claim in good faith. For example, if an insurer knows its policyholder is responsible for causing an accident, a refusal to settle with the victim can make the insurer liable for any excess personal injury award against the negligent driver.
On the other hand, an insurer may also be responsible to any medical provider that files a lien after providing services to the accident victim. That is to say, if the insurer simply cuts a check to the victim without first checking to see if there are any hospital liens, the hospital could turn around and sue the insurer for the amount owed (plus additional damages).
Kemper v. Equity Insurance Company