by xfi_servicing » Fri May 08, 2009 05:35 pm
Our customers insurance policy canceled one day before they were involved in a minor fender-bender. Our customers insurance company states policy canceled, no coverage. I disagree. The loss payee endorsement should protect us the lienholder for 10days...Am i wrong.. we are in FLORIDA!
Posted: Tue May 12, 2009 03:35 am Post Subject:
Since the LH wasn’t informed in this particular case, do they have any recourse against the insurer now?
I don't see where the OP stated that the carrier did not send notification out.Posted: Tue May 12, 2009 12:50 pm Post Subject:
Hi Daystar,
I'm waiting for your replies to my queries posted above.. :)
Steven
Posted: Wed May 13, 2009 04:26 am Post Subject:
Hi Kelvin and Steven,
Where I work this is referred to as collateral insurance protection. Be it a LH or a mortgage company, if the policy is cancelled, the LH can force their own very expensive coverage.
As InsTeach & Lori said, it depends on contractual language and loss payee endorsement. I have seen cases where the insured has brought me notification from the lienholder that coverage has been forced due to notification from the carrier that the personal auto policy has been cancelled (or non-renewed and no other coverage is in force). I have seen the section for loss payee left blank when there is in fact proof of a LH. Usually I will make the contact to the carrier & advise them that there is a LH and give them the contact information. They in turn contact the lender and once there is confirmed documentation that there is a LH the carrier usually settles with the LH for their insurable interest. So yes, the LH can demand payment. If the LH has forced coverage and the insured has proof of payment, we are able to fix that issue for the insured however it takes a very long time. Nine times out of ten, the insured receives the notification from the LH and they are very confused as they have been making their premium payments. It boils down to incorrect records being sent to the DMV insurance verification program.
I am getting off subject...sorry! Yes, I have handled issues such as this and with proper documentation, the LH is paid. I have had many Lienholders contact me (such as the one who started this thread) and if I can, I will try to intervene between the LH & company and resolve to the satisfaction of all. I believe there were two cases that went to court regarding this type of issue and I do not know the outcome as once it goes to court, I'm out of it.
So I've seen both sides....notification sent to the LH and notification not sent to the LH. It can get messy but with patience it usually is resolved.
Daystar
(Kelvin...what do you think buddy? :))
Posted: Thu May 14, 2009 10:12 am Post Subject:
It seems that the borrower get into the accident right after getting his policy cancel. And it might happen that the lienholder didn’t get the time to enforce their coverage within this short period.
So, are they still eligible to receive coverage?
Posted: Thu May 14, 2009 10:19 am Post Subject:
Wow! Daystar great info :D
Daystar says,
Yes, I have handled issues such as this and with proper documentation, the LH is paid.
What are the documents required by the lienholder to prove its claim? I guess one would be the proof of the title being on their name. Are there more?
Posted: Sat Jun 27, 2009 02:19 am Post Subject: hail damage on my car
Hey I have two claims on hail damage. The first one could have been fixed with pdr, but when we contacted the insurance company they sent the check to the body shop with out our name on it. He cashed it and did not notify me. We are struggleing with our insurance company to get this money back! The second hail storm caused more damage to our car before the first was fixed. Pdr will not fix some of the damage that was caused. We recieved the check for the second claim and we are still waiting to get the first check. The check that we have now is writin to me and my lien holder and he is wanting to keep the check until we find a place to get it fixed at, but we can't without the other part of our claim. I'm affraid to sign the check over to my lien holder until i get the other part. What should I do?
Posted: Mon Jun 29, 2009 06:40 am Post Subject:
Hi Jay,
Have you used a DPR bodyshop for the repair works? I guess that is the reason for the check being directed to the repair shop.
e are struggleing with our insurance company to get this money back!
Why do you want the money back? Are you not planning to get the repair work done?
Posted: Tue Jul 12, 2011 02:29 am Post Subject: Bad Situation
That does sound like a bad situation. Something similar to that happened to my brother down here in Florida (we get a lot of rain), and we had to go through two separate hail claims. I am sure our insurance company was kind of skeptical as we had to claims for hail in a handful of months...I know kind of hard to believe.
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