They can close their file but that has no meaning as far as you are concerned. You have the right to file suit to collect on your claim for 2 years following the date of the accident. They are really saying that they will not increase the offer and if you want more you are going to have to sue them, which you have a right to do.
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I think you could recover from Vehicle A if you could show Vehicle A was at fault in the accident. Usually if you hit someone from behind you get cited for following too close. If you are 100% at fault for the accident then you will have a very difficult time recovering from vehicle A.
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I think it depends on how the collision occurred. If the horse was standing in the road and you hit it, I think you will have a hard time making the owner liable. If the horse dashed out into the road in front of you while you were moving, I believe you would have a fair chance of success. Good luck!
I am not sure about Minnesota. In Georgia a wrongful death recovery passes outside the estate and is not subject to medical liens incurred by the decedent. Wrongful death recoveries are generally deemed to belong to the survivors and not to the estate, unless there was a predeath claim for pain and suffering.