Legal Question in Insurance Law in California
Denied Claim
6 months ago we had a driver (taxi co.) who, on his 3rd night there, was in a minor accident with another individual. It was our drivers fault. Obviously, we have (or so thought!)insurance on these vehicles, & are required to keep all information filed on not only the vehicles up-to-date, but the drivers, as well. Also, the driver never returned to work, after that.
Anyway, after 6 months of giving us the run around in their paperwork shuffle, our insurance co. is refusing to pay, saying we violated the policy by failing to notify them of the new driver prior to the accident? We've never had this happen before (claim denied for this reason). Can They do this?
2 Answers from Attorneys
Re: Denied Claim
It really depends on what your policy says. Without seeing the policy it is impossible to give you an accurate opinion. If you would like to send me a copy for review you can. I charge $150 per hour and would need a $600 retainer.
Re: Denied Claim
I do not believe the claim should be denied if you are the registered owner of the vehicle. California has a permissive user law, which requires the insurer to cover all permissive users of your vehicle, with the minimum (at least) 15/30 limits. If you have a policy filed with the PUC or the City, the limits may be higher.
There may be a designated driver exclusion, however, which the law also permits. It would take a reading of your policy and application, plus a review of your course of conduct respecting how you handled other drivers, to give a definitive opinion.
What about your agent - usually this is handled through a brokerage. How did the paperwork get messed up?
There are questions which need answers before you can really know.
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