Just stop paying on it and eventually they will offer a settlement of about 25% of what you owe. Tell them you have to break it into 4 payments and make them fax or send you the agreement. Take any cash out of that bank that you have and then hire a credit repair guy to clean the scar off your credit(I know some) when it's said and done. The collection calls will start with nasty people and then when the nice ones start calling it's about to happen. My friends at the bank told me they settled up on large accounts for 15%. You will have to pay taxes on the amount charged off.
P.S. I fucking hate banks and insurance companies
P.S. I fucking hate banks and insurance companies