Lauren Scruggs Working Toward Resolution with Insurance Company

03/28/2012 at 08:45 AM EDT

Lauren Scruggs in Ongoing Dispute
Lauren Scruggs
Despite previously reporting that Lauren Scruggs rejected a $200,000 settlement offer from the insurance company for the plane that severely injured her last December, PEOPLE received a statement from the fashion blogger and model's lawyer indicating that negotiations are still ongoing.

"Attorneys for Ms. Scruggs wish to clarify that she neither accepted nor rejected the insurance company's offer," the statement reads, in part.

As part of the negotiations, Scruggs, 23, who lost her left hand and eye after being struck by the plane's propeller, asked the court to define the term "passenger" as outlined in the insurance policy.

Scruggs is arguing that she was not a passenger at the time of the accident because she had already exited the plane and was standing on the tarmac.

The statement from her lawyers says the dispute over the definition of "passenger" has been resolved, but did not elaborate.

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