If a person had a policy with a liability limit of $100,000 and the medical bills, legal fees, and other damage expenses exceeded that limit, what should be done?

When there is a policy limit of $100,000 and the awarded or settled amount by way of medical bills, legal fees, and other damage expenses exceed this limit, the insurance company would be obligated for paying only up to the policy limit. One could go on trial and obtain a verdict from the jury for sanction of amount exceeding the policy limit by proving mitigating circumstances. In that case, the insurance company would be obliged to honor the verdict and pay the awarded amount. In certain cases, the lawyer could make a ‘special demand on policy limit’. If the insurance company rejected that demand, it would be obligated to pay the entire amount awarded as damage liability, irrespective of the amount or the policy limit.