Auto Insurance Claims: stolen vehicle, state insurance commissioner, tax liabilities

Question
My husband was in Memphis, TN on Febuary 10 when our 2005 Ford Explorer was stolen from his aunt's apartment building. The next day the truck was found burned. He was there staying over night to visit his brother in a correctional facility the next day. When he called and reported the truck stolen the police took 5 hours to show up. They said there was no crime scene to process because there was no broken glass. Our insurance company still has not settled the claim. My husband told them before that he was paid in cash through his job as an independent contractor due to certain reasons. They are demanding tax returns that he does not have and are demanding to meet with his employer whom does not want to meet with them in fear of tax liabilities. My husband did however sign a 8821 tax form for the lawyer working for the insurance company. They said the claim is being held up because we are not cooperating, they cannot reach the employer, and they cannot prove why my husband was in Memphis when the vehicle was stolen. We have been still making insurance payments up until the policy expired and we had to rent our own car up until we could not afford it anymore.

Answer
Hi Alicia,

Your husband is under suspicion for fraud.  The insurance company does not bring in an attorney to depose you under oath unless and until they suspect fraud on the insured's part.

Hence, MAKE DARN SURE YOUR HUSBAND ANSWERS EACH QUESTION ACCURATELY AND THAT HE NEVER EVER EXPRESSES HIS OPINION ON ANYTHING THAT HE DOES NOT KNOW AS FACT.

Normally, I would have the claimant call the state insurance commissioner.  But in this case, I am a bit worried that the insurance commissioner's office might uncover something your husband's boss is not ready to have exposed.

Basically, the issue ought to be just what was THE ACTUAL CASH VALUE OF THE VEHICLE AT THE TIME IT WAS STOLEN.  They should not have any need to ever know what was paid for the vehicle, since it could have been a gift, and you still are entitled to the actual cash value, irrespective of what it cost when you got it.

You can see that this argument makes sense because if someone had the vehicle for six years prior to the theft, what relevance at all could the purchase price ever have on the actual cash value at the time of theft??

I wish your husband had not signed the tax return form.  If there is no worry about what they might find our from the employer, go ahead and file the complaint with the state insurance commissioner.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com

paid for teh vehicle