| Q&A of the Week |
Adopted Child Causes Damage in Auto Accident
A Vermont subscriber recently asked the following question:
I am working on a complaint that involves an adopted child with a driver's permit only and need some assistance as to whether or not the auto liability should pay for damages to a third party. The insured states that her adopted son, age 15 and holding a driver's permit only, took the family car without permission and then he was involved in an accident. The adjuster is denying coverage stating that there is no coverage as the car was taken without the parents' permission. My feeling is that the child, a minor, had access to the keys so the parents should be liable for the damages that were caused by their son. I would like to know what your thoughts are.
ANSWER: We cannot answer whether the parents should be liable in this situation since that is a legal question for an attorney to answer. However, according to the wording in the PAP, the child was certainly a family member and certainly an insured. There is an exclusion on the PAP for using a vehicle without a reasonable belief that that insured is entitled to do so. But that exclusion goes on to state that it does not apply to a family member using the named insured's covered auto that is owned by the named insured. This exception to the exclusion is meant to apply in situations such as this since family members, especially children, often use the family car with or without the expressed permission of the named insured.
It may be that the adjuster is relying on a differently-worded PAP, but if the wording on your policy is the same as on the standard PAP, there is coverage for this claim. Read More |
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| What's New This Week in FC&S |
Hotels, Motels, and Inns
The Insurance Services Office (ISO) has developed a market segments program providing specialized coverages for certain specialty insurance markets. Read More |
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| Litigation Watch |
Validity of a Waiver of UIM Coverage
The insureds seeks to compel their insurer to provide underinsured motorist (UIM) coverage on the grounds that their waiver was invalid. This case is Lieb v. Allstate Property and Casualty Insurance Company, 2016 WL 66544.
The Liebs purchased an insurance policy on their car from Allstate. As part of that transaction, the Liebs signed a waiver of UIM coverage. The waiver form, which Allstate provided, included lines for a signature and a date. The Liebs signed the form but did not date it. Ed Lieb faxed the form to Allstate and Allstate noted the fax had a timestamp on it. Read More
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| Fraud of the Week |
Auto Fraud – California
AMOUNT: $19,625
A Sacramento couple have pled no contest to felony insurance charges. The man had an accident rear-ending another vehicle. He drove off without providing a license or insurance information. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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| Contact Us |
As always, your comments and questions are welcome.
Contact us at:
FC&S Department
Phone: 800-543-0874
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