Denise W said:
Nope, I worked for 35 years in claims, underwriting and subrogation and was licensed in all required states and handled all 50 states. I was also a panelist for Intercompany Arbitration for 15 years. Each state and each carrier in that state is different and some could work that way. I don't agree with it but that is what it is.
Hearing now that the title will be signed over to the daughter and deleting the vehicle from her policy is the best way to protect the OP from any legal liability.
Denise
You are correct that each state is different.
Which is why blanket statements about how to handle the matter arenot ti be trusted.
If she excluded him from the policy under these circumstances . . .
As a plaintiff's attorney I'd be screaming "negligent entrustment", that the owner knew this individual would be driving the car. A story like this . . .where owner does not maintain control of the car but passes control to another individual knowing that the person entrusted with the car is likely to allow the excluded driver to drive the vehicle . . . Is very ripe for litigation.
Even if the vehicle's owner wins, she loses, because she's been dragged into litigation -- not intercompany arbitration-- her carrier may or may not be providing a defense, and by the time things get sorted out, she will have had all sorts of aggravation and expense.
Even if her insurer pays for her defense, even if she wins, she's going to be dragged into the muck.
Ever hear "fraud vitiates the policy"? She knows the guy is going to drive the car but lists him as an excluded driver. She's made a representation to the insurer which is false. I see that as ripe for coverage litigation between the vehicle owner and the carrier.
I'm just spinning these scenarios in my head without looking at the policy or the law of any particular jurisdiction, and it's making me very wary.
He goal isn't to win at arbitration or litigation. It's to avoid being involved.
Bottom line:
The more distance she puts between herself and the car, the less likely she is to find herself involved in litigation or arbitration should an accident occur when the boyfriend is driving the car.
The best advice is not to rely on statements on an internet nessage board. The best advice, which I made in an earlier post, is to consult a lawyer in the appropriate jurisdiction.
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