Coverage Pickle

[AZDave]

Why do I get the difficult claims!

Insured's daughter drives boyfriend's car and hits a block wall. At first, boyfriend tells his parents that he was driving. Not wanting car insurance rates to go up, boyfriend's parents pay $4700 to repair auto.

Months later the love is gone and boyfriend fesses up to parents and tells the truth that the ex girlfriend was the driver.

Boyfriend's parents hire attorney. I instruct insured to file claim with their Carrier for possible coverage. Coverage does exist but only on an excess basis. First , the owners policy must deny the claim.

Owners refuse to file, so my insured's Carrier places claim. Nat Gen is the boyfriend's carrier. Owners refuse all calls and do not cooperate with the Nat Gen claim. This was filed in September. The loss occured in June.

Now the ex boyfriend s parents attorney demands $ by the 31st of October or suit will be filed. Damages + attorney fees + on top of repair cost. Attorney says no to cooperation with Nat Gen.

Coverage pickle.

Nat Gen can deny this claim due to non cooperation, or due to not being able to inspect damage prior to repair. But at the speed this is moving, may not happen till after demand deadline.

Of course my insured is pissed at his adjuster for not moving fast enough. Pressure is on and things are getting tense.

Gotta love this business.

 

[fed up]

How old is the daughter? Has she admitted to anyone that she was driving since the young man said it was him originally? Does she have any assets?

 

[AZDave]

16, she admitted fault.

 

[fed up]

Who is the attorney suing?

 

[AZDave]

My insured, the parents

 

[fed up]

The carrier for your customer should have an obligation to defend against any suit, even one they have denied coverage for. I would be curious to see how this plays out in a courtroom when the plaintiff is asked if they reported to their own carrier, why they have not filed a claim (because they lied on the first go around)

 

[goillini52]

The thread title reminded me of a girl in High School. Her nickname was "Pickles".

 

[Allen Trent]

The thread title reminded me of a girl in High School. Her nickname was "Pickles".

Did pickles have no coverage?

 

[goillini52]

Did pickles have no coverage?

No, but the pickle did.

 

[AZDave]

Well this claim is certainly dealing with sour pickles!

The attorney just sent another letter of demand to my insureds making is crystal clear that:
1. No claim will be filed with boyfriends Carrier.
2. Lawsuit will be filed against my insured on 10/31 unless payment is made.

Givin this, I'm thinking my customer is screwed. My insured's adjuster say's if lawsuit is filed, they will refer it to Legal and represent, but if they only pay as excess, they have no duty to defend a claim that will have no coverage.

Hmmm.