The below question was left in my inbox...by an unregistered poster......lori
Quote:
In a prior post, you mentioned that the insurance company has a duty to protect a lienholder in some cases but not in others. Is there a statute or case that I can reference?
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protect a lienholder in some cases but not in others
Well, it would really depend which thread...but safe to say that if it's first party claim, (you are the insured), then the carrier must protect the leinholder. The only time that a third party (claimant) lein holder must be protected (and really it's not protected)...is if the vehicle totals....in that case the lienholder has to be paid to get the title released... _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
The insurers are required to protect the interest of the lien holder because, in case of the financed cars, the ‘title' of the car stays with the lien holder. And the loan needs to be paid off before the lien holder releases the title to the owner or the insurance company. _________________ Register Now to have your Insurance queries solved.
Such instances are available in plentitude….if you wreck your brand new car in which you still have the entire amount of loan unpaid, the insurance company will write the claim check towards the insurance company, because you're not yet the legal owner of the vehicle.
You might have experienced that everytime you try to grab a new car, the lender insists you upon carrying extra coverage on the vehicle, the reason remains that the financer shouldn't suffer financial loss during the business and his interest should remain protected. _________________ Register Now to have your Insurance queries solved.
