Primary Driver Vs. Secondary Driver Claims Question

[scagnt83]

Hypothetical question here for anyone who might know...

A person buys a car for another with no intent on using that car at all.

They list themselves as the primary driver of the car (which they are not) and do not list a secondary at all.

Finally, they list a secondary driver (truly the primary driver) after about 4 years.

About a month or two later the car is totaled while the now "secondary" (really the primary) driver is driving it (they were not at fault for the accident).

If there is definitive proof that the person listed as primary never drove the car or intended to drive the car and the insurance company found out about this; would the IC rescind the policy???

Just from being in the industry I assume that they can; but if they were informed of this what is the likelihood that they would investigate and follow through on rescinding the policy???


Any advice or experiences would be appreciated

 

[desert boy]

Well, That would be considered a MisRep, so no coverage, althou, if the IC had no clue about it, then the IC would probally just ask if the actual driver was a permissive user driver, if replied yes, claim paid.

Especially after 4 years, the IC would probally go straight to the permissive driver question, UNLESS there is a reason or someone told them about the real situation.

 

[djs]

The driver that was involved in the accident is listed on the policy (regardless of 1, 2, or 10). They are not excluded from the policy.

Claim covered. No real questions asked. Good thing they were added a few months ago though.

I've never heard of a P&C policy being rescinded. I've heard of claims not being paid due to fraud, but the policy still doesn't get rescinded, perhaps non-renewed. I've heard of cancelled with legal notice, still not rescinded.

Could vary by state though....

Dan

 

[Indiana_Adam]

Many parents do that. They list themselves as a primary driver and their child as secondary, regardless if the parent ever really drives the car. The IC is still going to cover the claim. Hell, some parents even try and keep their children off the Auto policy as long as possible, to save on premium. It doesn't mean that child doesn't have consent to driver their vehicles. Also, IC of the at fault party is going to cover the the damages, regardless of who was driving the other vehicle, as long as no laws were being broken and driver and consent to drive.