Answering insurance questions

[Stupidquestionspro]

Here's an odd one for you, I was asked this informally in connection with someone's bankruptcy and didn't have a clue myself.

Driver holds an insurance policy on a late model car. There is a loan on the car, but, no lien holder was listed in the policy nor was the lender named as an additional insured. Liability/comp/collision exists, but no gap policy.

As part of the bankruptcy, owner is trying to redeem, BUT may end up surrendering vehicle.

Does the auto LENDER have any right under the insurance policy to initiate a claim under collision coverage for dents/defects without the owner wanting/being willing to do so?

It may be policy specific, but, really just looking to whether a 3rd party who isn't listed can customarily try to initiate a claim.

I am not licensed in claims and I only am licensed in Florida so definitely take this with a grain of salt.

If the lender can prove that they are in fact the leinholder on the title and it just isn’t listed I would assume the insurance will in fact accept a claim for collision from them because they have legal proof as well in the same thought I’m not sure about bankruptcy laws but from what I understand if the vehicle is in fact financed and there isn’t enough equity to over run the asset retention amount the vehicle can be kept as well because technically the vehicle asset is owned by the finance company.

None of this of course is anything but my guess and assumption from what I’ve seen.


Sent from my iPhone using Tapatalk

 

[Stupidquestionspro]

If anyone else has questions let me know I’ll do my best and if you need a hagerty quote or a normal auto or home quote I can help too I can also answer questions about home,life some health insurance


Sent from my iPhone using Tapatalk