Q&A of the Week |
Coverage for Repossessed Vehicle
An Ohio subscriber recently asked the following question:
In the Auto Dealers Declarations form, under Item Six, there is a category listed as "Interests Covered—All Interests in Any Auto Not Owned by You or any Creditor while in Your Possession On Consignment for Sale." Could this coverage apply if our insured repossessed a vehicle and had the vehicle on its lot?
ANSWER: It depends on who owns the car. If the insured owns it or the creditor owns it, there is no coverage under this category. What that portion of Item Six applies to is if, for example, I own the car outright and give it to the insured on consignment for sale. The insured and I would have an interest in the car. If a creditor that owned the car gave it to the insured on consignment, that section of the form is not applicable.
So, the answer to the question depends on who owns the repossessed vehicle. Presumably, when a car is repossessed, the person that bought the car has not made the payments and the creditor is taking back the car. The creditor (perhaps the insured; you did not specify) holds the actual title until the car is paid for, but the buyer is held responsible for the ownership of the car. So, you might want to check with an attorney who is familiar with the law in your area on this point. Read More |
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What's New This Week in FC&S |
Scheduling Personal Property for the Homeowners Insured
Homeowners forms commonly limit amounts paid for loss to certain classes of property. For example, Insurance Services Office form HO 00 03 05 11 limits are: money ($200); securities ($1,500); watercraft ($1,500); trailers ($1,500); theft of jewelry and furs ($1,500); theft of guns ($2,500); theft of silverware ($2,500); business property—on premises ($2,500), off premises ($1500-changed from $500 in the 2000 form); and some types of electronic apparatus ($1500). Read More |
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Litigation Watch |
Slogan Infringement Coverage Dispute
This case came before the court upon the cross motions by the parties for summary judgment. This case is Auto Mobility Sales v. Praetorian Insurance Company, 2015 WL 3970578.
Auto Mobility Sales, the insured, sells and rents handicap-enabled vehicles. Florida Van Rentals, d/b/a Discount Mobility USA and Medical Travel, filed a lawsuit against Auto Mobility alleging claims of unfair competition and trademark infringement for using the terms "discount mobility" and "medical travel" in advertisements.
Auto Mobility was insured under a general liability policy issued by Praetorian. This policy applied to damages because of personal and advertising injury but excluded coverage for infringement of copyright, patent, trademark, or secret. However, an exception to the exclusion allowed coverage for infringement, in the named insured's advertisement, of copyright, trade dress, or slogan. When the insured was sued, it sent the complaint to Praetorian, but the insurer declined coverage, asserting that the policy excludes the trademark infringement claims made by Florida Van Rentals.
Read More
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