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by barginlyn » Wed Feb 23, 2011 03:20 am

what happens when an insurance company insures a company that is not registered not licensed,and the owner causes you damages. you sue the insurance company. is there any way the insurance company will not pay you since the owners company was not legal? is there a law for insurance companys to check and see that the company they are insuring is legit?

Total Comments: 3

Posted: Wed Feb 23, 2011 05:05 am Post Subject:

When you say the company is not "registered" what do you mean by this? It should not matter what state the company is for the insurance company. They choose to accept the risk when they wrote the policy.

Posted: Fri Feb 25, 2011 05:39 am Post Subject:

Do you mean that they don't have a license to do business? If not, then you can't sue a business entity. But if the business doesn't exist then the coverage terms get violated. In that case, I don't think the insurer is liable to pay for damages. The policy may also be canceled accordingly.

Posted: Fri Feb 25, 2011 05:17 pm Post Subject:

Insurance companies are not "licensed" or "registered" in a particular state. Insurers are either "authorized/admitted" or "unauthorized/non-admitted" within a state. There are significant differences here... you're going to have to give us more details in order for us to answer your concerns.

First of all, what's the name of the insurance company? The actual insurer- not the agent who sold you the policy... that comes into play later. Secondly, what state do you live in? These two pieces of information will allow me to answer your questions.

and the owner causes you damages



What does this mean? The owner of the other car? The owner of the insurance company? Who?

is there a law for insurance companys to check and see that the company they are insuring is legit?



All insurance companies are required to adhere to state law... And, what do you mean by "see that the company they are insuring is legit?"

Explanation, please!

InsTeacher 8)

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