What is a covenant not to execute? My name is Kenneth Berger and I practice law in Columbia South Carolina and I handle accident cases everyday.
A covenant not to execute is what you sign when you want to get all the insurance money from one company but you suspect that there may be additional insurance proceeds available from another policy.
Let me give you an example. Let's say you get into a wreck with a drunk driver and you've got $50,000 in medical bills yet that drunk driver only has a minimum limit $25,000 policy. In this case, you wouldn't want to sign a release. You would sign a covenant not to execute, in essence, promising not to go after the drunk driver's personal assets if they had any, and in return you get the $25,000 plus the opportunity to pursue additional insurance coverage, most likely in the form of "underinsured motorist coverage" through one of your own policies.
If you have any questions about this topic, please don't rely simply on an insurance adjuster's reputation or promises. Instead, request free copies of my books, call me for a free case evaluation at 803-790-2800, and make sure that all your rights are protected. I look forward to speaking with you.