Operators and the MAP

    Posted by MAIA on May 18, 2020 9:31:13 AM

    This question was answered based upon current rules, regulations & statutes in effect on May 15, 2020
     
    QUESTION

    We have a potential client that bought a car for his grandson but kept it in his own name until grandson was 18. About 9 months after grandson got his license he was in an accident with a moped.He received a letter saying since grandson was not on policy and residing in his household,they would not honor "optional coverages." I had always thought no coverage would be honored, not just "optional." Any thoughts?

    ANSWER

    Irene Morrill:  Whether living in household or not …if one is going to be a “customary operator” …that person needs to be listed. 

    The AIB MAP doesn’t exclude “compulsory coverages”

    The exclusion is in the General Provisions – 18 False information

    18. False Information

    If your or someone on your behalf gives us false, deceptive, misleading or incomplete information in any application or policy change request and if such false, deceptive, misleading or incomplete information increases our risk of lass, we may refuse to pay claims under any or all of the Optional Insurance Parts of this policy.  Such information includes the description and the place of garaging of the vehicle to be insured, the names of all household members and customary operators required to be listed and the answers given for all listed operators.  We may also limit our payments to those amounts that we are required to sell under the compulsory coverage of this policy.

    Part 1 and 2 respond …and Parts 3 and 4 are brought back to compulsory limits.

    Cheaper to tell the truth as to who is going to drive the vehicle. 

    Names of all household members …and names of all customary operators.

    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: Registry, 2020

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