New driver in the house? be sure to inform your insurer
Be informed of the many requirements and restrictions that are required by auto insurance policies. One firm rule is that the insurance company must always be notified when the number of drivers in a household changes. The purported lack of compliance by one family with this principle led to denial of insurance coverage by the Illinois courts.
A common requirement of an application for car insurance is to list all persons in the household who drive and have not yet reached the age of 25. This was the situation involving a woman whose application for insurance was recently reviewed by the court. She told the insurance company that the only operators were husband and herself. When Mrs. D was issued the policy, the conditions stated that the policy could be rescinded if the insured misrepresented any information that could materially affect the risk assumed by the insurance company.
On her application for insurance, Mrs. D allegedly failed to inform the insurance company that her minor son would be receiving his drivers' permit soon. A period of about one month marked the interval between the son receiving a permit to drive after the insurance application was signed and filed. Mrs. D also allegedly failed to inform the insurance company that her son was an operator in her household on subsequent applications to amend the policy for coverage of different vehicles.
He allededly got into two car accidents after the policy was issued, one of which resulted in an injury to one of his passengers. The motor vehicle insurance carrier rendered a determination that the insurance coverage was rescinded responsive to a report of the injurious occurrence. A lawsuit was filed after the accident. One part of the suit involved deciding whether it was proper for the insurance company to rescind the policy. The court concluded that the rescission of the policy was warranted because Mrs. D made a "material misrepresentation" to the insurance company when she failed to name her son as a minor household driver. She was found by the court to have had a multitude of chances to properly inform the insurer and had received notification that policy rescission was a consequence of failure to fulfill these obligations.
If you have a new driver in your home, be proactive and inform your insurance company. This case also points out the larger rule that the insured is required to provide full and truthful information in an insurance application or request for renewal of an insurance policy. Imagine being involved in a car accident, only to find that your coverage has been denied. This can be the result if you fail to meet these requirements. Ask a lawyer if you need assistance in determining the duties of an insured under your motor vehicle insurance coverage.
This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations.
A common requirement of an application for car insurance is to list all persons in the household who drive and have not yet reached the age of 25. This was the situation involving a woman whose application for insurance was recently reviewed by the court. She told the insurance company that the only operators were husband and herself. When Mrs. D was issued the policy, the conditions stated that the policy could be rescinded if the insured misrepresented any information that could materially affect the risk assumed by the insurance company.
On her application for insurance, Mrs. D allegedly failed to inform the insurance company that her minor son would be receiving his drivers' permit soon. A period of about one month marked the interval between the son receiving a permit to drive after the insurance application was signed and filed. Mrs. D also allegedly failed to inform the insurance company that her son was an operator in her household on subsequent applications to amend the policy for coverage of different vehicles.
He allededly got into two car accidents after the policy was issued, one of which resulted in an injury to one of his passengers. The motor vehicle insurance carrier rendered a determination that the insurance coverage was rescinded responsive to a report of the injurious occurrence. A lawsuit was filed after the accident. One part of the suit involved deciding whether it was proper for the insurance company to rescind the policy. The court concluded that the rescission of the policy was warranted because Mrs. D made a "material misrepresentation" to the insurance company when she failed to name her son as a minor household driver. She was found by the court to have had a multitude of chances to properly inform the insurer and had received notification that policy rescission was a consequence of failure to fulfill these obligations.
If you have a new driver in your home, be proactive and inform your insurance company. This case also points out the larger rule that the insured is required to provide full and truthful information in an insurance application or request for renewal of an insurance policy. Imagine being involved in a car accident, only to find that your coverage has been denied. This can be the result if you fail to meet these requirements. Ask a lawyer if you need assistance in determining the duties of an insured under your motor vehicle insurance coverage.
This article is intended to present general information for educational purposes, is not legal advice and should not be relied upon in connection with any particular matter. The reader is advised to immediately retain their own separate legal counsel with respect to any specific legal issue. Rights to bring a claim will expire through the passage of time by the applicable statute of limitations.