QuestionI have a scenario where a customer was driving a vehicle in Michigan and hit someone. The insurance company ( Michigan policy) is denying the claim because the customer failed to list a member of the household on the policy, even though that unlisted household member wasn't even in the car at the time of the accident. The insurance company is calling it misrep and denying the claim. Can they do this?
-Trisha
AnswerTrisha,
That is a tricky one to explain, but here goes:
1. If knowing about the household member would have caused the insurance company to refuse to write the policy, then the insurance company can probably get away with refusing to provide coverage and canceling the policy flat all the way back to inception based on the withheld information.
2. The other person (that didn't list the household member) could allege that when the policy was purchased, that nobody asked them about additional household members, and then the insurance company would have to prove that their agent or purchasing process includes clear and conspicuous information regarding the disclosure of household members.
3. You are not a party to the insurance policy, you are a third party seeking payment for liability and you really can't do anything to the insurance company. The only thing you could do is seek civil relief by filing a suit against any negligent party for your damages and hope you can get paid.
I'm sorry if this isn't the answer you were looking for, but this is a common and frustrating issue for many accident victims. Insurance companies can allege misrepresentation and place the burden of proving coverage upon their own policy holder. Most policy holders don't have the funds or know how to fight a misrepresentation denial like what you're describing. I wish you luck. Information is always free at Petty Details, LLC, look us up if need further assistance!
