After 40 years as an insurance professional, I thought I had heard every possible coverage question–but I was wrong. An attorney recently asked me to determine ownership interest and insurable interest on a rather convoluted case involving a car and bank repossession. It's been a long time since I have had to use the tried-and-true answer, "I don't know but I know how to find out," but that's what I did.
Here are the specifics of the case.
Bob Jones (owner) purchased a vehicle and arranged for insurance and financing. Some time later, Jones, faced with financial difficulty, was unable to continue his financing and insurance payments. Not wanting to lose the car, Jones arranged to lend the vehicle to his friend Jim Smith (user) for an indefinite period if Smith would agree to maintain the financing and insurance payments. The idea was that when Jones' financial situation improved, he would take the car back and resume making the required payments.
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