by lasaundra23 » Fri Dec 07, 2012 08:35 pm
I work for credit unions attempting to collect on damages done by vehicle that has been repo'd. I have one claim where the insurance company issued payment only to the insured but the damages were never repaired. they are insinuating that since the lien holder was left off of the application by the insured that they have no responsibility to return the money that is owed to fix the vehicle. the state is colorado and it is hard to believe that they have a ground to stand on. Please help. My question is shouldn't the insurance company verified that all of the answers were true on the policy when coverage was afforded. Also, is there some statute in CO that would protect the lien holder and help to recoup the money owed to repair the vehicle. Please help thanks
Posted: Sat Dec 08, 2012 04:54 am Post Subject:
Your matter is not an insurance matter, it is a contract law matter between the lender and the borrower. If the contract states the borrow must obtain insurance and list the creditor as an additional insured, it is the lender's responsibility to follow up and make sure that has happened. If not, the lender may obtain insurance to protect its interest -- if the contract permits.
How is the insurance company supposed to know what the agreement between borrower and lender is? That's not their job.
If you have contractual rights that were violated, you have the basis of a civil tort action. But not against the insurance company. The only person you can sue is the borrower.
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