The infinite variety of auto-related claims keeps adjusters busy researching policy wording and case law. This month, we address two reader queries concerning motor vehicles.
We are handling a claim that involves an error made by a bank when it provided a car loan payoff. The bank gave the insured (an auto dealership) a car loan payoff amount that was much lower than the actual amount still owed by the owner. The dealer relied on this information and entered into an agreement with a customer to accept his car on trade and to apply the balance (based on the incorrect loan payoff amount) as a basis for a new car purchase.
After the deal was completed and a few weeks passed, the dealership called the bank to inquire why it had not yet sent the car title to the dealership. At that time, the bank informed the dealer that the wrong amount had been quoted and that the actual payoff amount was higher.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
