My fiance was carjacked(car stolen at gunpoint) his insurance co. denied the claim due to misrepresentation.?

Question

the insurance co. stated that during the application process he answered a question falsely/wrongly about his driving record. he has been paying his premiums every month since feb/2008. he was carjacked in may/2008. the ins. co. should have pulled a driving record and denied coverage first off. this poor man was shot three times and now has to pay for a vehicle that he no longer has possession of. he also had GAP insurance when he financed the vehicle.

if anyone has any suggestions please respond ASAP!!!

thank you!!!

Answer 1

Insurance companies have no obligation to investigate and validate the accuracy of any policy application.   The person applying has obligation to be entirely truthful and he attests to that by signature (read the fine print on ap).

Answer 2

What has happen to him is bad but he should not have lied , what they are doing is legal

Answer 3

I will tell you that you need to find a good lawyer.  They sound like they are playing games. Prob. due to the fact he was not insured with them for a long period of time.

Answer 4

When you buy insurance coverage, you sign a contract.  Just like any other contract you sign, you are legally bound by it.

Within that contract it lawfully states the consequences for misrepresentation whether it be regarding your driving record or a fraudulent claim.

Unfortunately, whether you go to the Department of Insurance or your ombudsmen, I think your going up against a brick wall.  I sincerely hope you two pull through this.

Answer 5

Unfortunately this is common practice.  If he truly made a false statement about his driving record, he's stuck with the consequences in most cases.  His only defense at this point is to prove that his statements were not false.

In most states in the US, insurance companies have up to a year to underwrite an insurance policy.  Once it renews, they're stuck with whatever was claimed on the original application UNLESS they ask for a renewal application AND the policy holder still makes a false statement.  Some States require the insurance company to honor the claim but allow them to re-rate the premium using the correct information and then deduct the difference from any claims filed.

In the UK, the insurance companies appear to have an unlimited period of time to underwrite a policy and frequently defer that until there is a claim.  Denial of coverage is commonplace if there is a material mis-statement in the original application, even if it was many years prior.

Check with your State Insurance Commission in the US or the Insurance Ombudsman's office in the UK.

Answer 6

that's a crappy company he is with.  first off NEVER insure there again.  unfortunately they found a legal loophole.  i think i would have to contact the state insurance commissioners office on this and see if there is any way they can help.

Answer 7

ok my suggestion is my newly found weapon: http://locate-power-of-attorney.info/   It's a site that has Lawyers subscribed to it.

It's free to do. You shoot off your case and their lawyers are shown the info, then they might choose to take it or not and quote you a price, then you choose who you go with.

You get to thoroughly check the lawyer's backgrounds etc, it's good because you just spend 15 minutes with the site and that is it. You could have a choice of a few lawyers.