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The Dispute Over Insurable Interest |
Suppose someone purchases an automobile and then discovers, when it is confiscated by the police, that it was a stolen vehicle. Would the purchaser's automobile theft insurance apply? This issue has arisen numerous times, often leading to courtroom disputes between the purchaser and his or her insurance company. Not all courts have made the same decision. |
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One key issue is whether someone can have "insurable interest" in stolen property. Some courts have found that where the innocent insured loses the value and use of the vehicle when it is recovered by the police has insurable loss. But other courts have held that unless the innocent purchaser has somehow acquired legal title to the vehicle, he or she has no insurable interest in it. This was once the majority view, but each case must be examined on its own merit, and the trend is toward allowing recovery |
Often such situations arise where the purchaser is "less than innocent," such as one case where the purchaser saw the vehicle - in this case, a trailer - parked at a service station and purchased it from an occupant he did not know, without receiving a certificate of title. He had made two payments on it when it was stolen from him. The titled owner - not the person from whom he had purchased it - then made claim against the purchaser, alleging that the trailer had been stolen from him months earlier. Even though the trailer was now again stolen, the real owner's suit was successful and the purchaser became liable to the owner for the value of it. |
Other disputed cases involve claims where the insurance was placed on vehicles which the insured had stolen. In one case the insured's son borrowed one of the vehicles and was in an accident for which he was liable. When it came to light that the insured vehicles were stolen and that the insured was indicted on eight felony charges, the insurer declined to defend the insured or his negligent son in the accident claim, although it had already paid for the collision damage to the insured vehicle. The insurer demanded a return of that payment. The court agreed that the insured must return the collision payment, but ruled that the insured's son had sufficient |
Figuring out the nuances of each claim is the combination of art, craft and science taught in all the courses at Crawford Educational Services (CES). For complete course listings, visit our website. |
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Contact Us Today!
404.300.1526 | |
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March 10-21
The Intermediate Property class is a two-week course designed to elevate the skill sets of the basic property adjuster who has experience in homeowners claims and now needs to move up to handling commercial losses. |
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This one-week course is oriented towards the experienced auto appraiser with a minimum of three years experience, who is interested in becoming proficient in writing over-the-road equipment appraisals. |
At Crawford Educational Services, you'll get hands-on training from our expert instructors. We offer classes in property, casualty, and workers' compensation in our classroom facility in Atlanta, as well as customized programs at your location.
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Take Note! is a marketing tool of Crawford Educational Services, the training division of Crawford & Company. The contents and any referenced external materials are not intended to and should not be construed as legal or other professional advice, nor is such information intended to be nor should it be used as a substitute for legal or professional counsel. These materials merely convey general information about claims and claims related situations often encountered by claims professionals. While an effort is made to be accurate, Crawford & Company does not represent, warrant, promise, or imply that this information is current, accurate, thorough, or adequate.
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