July 2, 2014

My question is regarding the false pretense coverage endorsement, CA 25 03 03 10.

Our insured is a dealership that sells used vehicles. The insured sold a vehicle over the phone via credit card and arranged for the vehicle to be transported out of state. The funds were processed into the insured’s account and one month later, the insured realizes the credit card company has taken back the money from the account. The insured later finds out that the buyer of the car was using a false identity and stolen credit card.