Auto Claim - GMAC Wants Signed App

[insurance1822]

I've ran into this a few times w/ them (from what I gather..) trying to deny claims based off garaging discrepancies. When they call our agency...what EXACTLY do they want to see the signed auto app for? Do you think they're looking for a way to push something on our E&O? I'm guessing it's the following..

1.) Claim rep mentions the discrepancy in garaging address could result in no coverage. Insured insists "they told the agency where they garage the car" so the claim rep is hoping we DON'T have a signed app so they can push this on our E&O?

 

[INSUREGEEK]

Well, most apps have a Fraud warning of some sort on them....GMAC looking to see if the insured signed-off on what was submitted to them on the app. Here's the fraud warning for my state:

"Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud."

I wouldn't think GMAC is hunting the agency for E&O - the insured would do that, not the carrier - I think they are looking to see if the insured misrepresented themselves to you both. Doing so could void coverage at the very least.

I never bound anything until I had signed apps and a check for this very reason, among others.

Good Luck!

 

[BlockO]

insurance1822 mentioned garaging disparities, I was looking at some recent apps....

in addition to the fraud warning insuregeek was talking about, "the continuous duty to inform the company of any change in address" is among the list of things on an app that an insured is responsible for. the wording varies from carrier to carrier but the message is the same.

from my experience, claims aren't the only time companies are getting strict on garaging disparities. some carriers are getting picky about it before the policy is issued.... I have had three people in the past 6ish months that got turned down by one particular carrier, because they wouldn't issue the policy until garaging address was verified (a process that took this carrier two business days).

two of the three, I knew for a fact that the people were living where they said they were. but it didn't matter. I had no choice but to write two of them with another carrier, and the third I lost altogether.

 

[INSUREGEEK]

In some areas, premium differences between garaging locations can be huge.

I once had an SIU investigator uncover a specific address in AZ that had 30+ vehicles listed there. It was 90 year old woman in a mobile home park. She didn't even own a single car.

There was another case out of MA/NH where a bunch of Boston residents listed a single NH employer's address as a garaging location. I think some cars even got towed away in that one. It was a huge case costing the carrier a boatload of money in lost premium. I will see if I can find an article to link for you.

In my mind, there is no E&O if the insured deliberately misrepresented the facts on garage location. You do the best you can to make sure all the info makes sense, and get that signature. Those client files are open to inspection by appointed carriers at any point.

 

[BlockO]

In some areas, premium differences between garaging locations can be huge.

no kidding! just today, I had someone move from knox county to ross county.... premium went up $45/mo.

 

[shawnmwalker]

I have seen this from the carrier perspectives. It is not pretty from a carriers perspective to find out that you have been cheated out of 1,000,000 in WP. It is not good to know that if you had the premium the state would have been profitable and....blah... you get it.

Confronting the agency was one of my more interesting meetings in my 13 year career. I'll spare the details but the meeting included the words "Insurance fraud", "possible jail time", and there were tears.

 

[insurance1822]

We had GMAC's SIU rep call who was fully convinced our insured intentionally misrepresented his garaging address. He claimed the guy lived out of state & all this jarble until we shower his homeowners dec page. The rep shut his mouth & payed the claim

These nonstandard carriers are scum. The seek to deny claims 1st

 

[shawnmwalker]

I have no comment on the Claims Practice of the Non standard carriers. I simply want set the name straight on this thread:

GMAC is National General.

 

[insurance1822]

I have no comment on the Claims Practice of the Non standard carriers. I simply want set the name straight on this thread:

GMAC is National General.

For those of us in the field (actually writing business...) "GMAC" is quicker to say & more recognizable from the credit card, car loan, mortgage & real estate business opposed to "National General" of which sounds similar to "The General."

Granted both carriers market to bums...but The General markets to the lowest grade of bums. Interestingly The General is now distributing through IA's..but that's only of concern to those agents wading through bums in the ghetto.

I do appreciate you setting the record straight on National General vs GMAC for those who didn't already know