Client Passed and We Did Not Know

    Posted by MAIA on Aug 13, 2019 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on July 25, 2019

    I was under the impression that you had to have a valid license to register/insured a car in your own name.

    I have a policy that is just ready to renew and I was re-marketing it for a better premium, when I found out the owner and principal operator does not have a valid license, he has been deceased since 12/9/2014 but the RMV renewed the plates.  

    What if anything should I consider doing about this.

    ANSWER

    Kathy Cormier:  The customers family renewed the plates...this isn’t good.  There is a clause in the policy about what happens if you die and Irene Morrill actually wrote a tech talk on this topic (see attached).

    4. What Happens
    If You Die

    If you die, we will continue coverage for the period of this policy for:

    1. Your spouse, if a household member at your death.
    2. Any legal representative to the extent he or she is responsible for maintenance or use of your auto.
    3. Any person having proper temporary custody of your auto.

    The plates shouldn’t be renewed because the named owner is deceased and the policy should have cancelled on renewal.

    My recommendation is that if there is a surviving spouse that they transfer that title over to their name ASAP.  For a surviving spouse, there is no cost for a title and if the plate is in good standing they will reassign it to the SS.

    I hope this helps.

     This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: 2018

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