Insurable Interest

[tiffany8898]

I am independent P&C agent, new within the last year. I have a family member who insures a pickup truck through state farm. My question: this is a ranch truck and is owned by the ranch corp. Can a personal auto policy cover that truck as the corp member does not personally own it? Are state farm policies structured differently?

 

[NortheastInsurance]

What's it's use? Personal or commercial?

 

[Jcarpenter]

When your family member created this corporation they created a separate entity. One of the biggest reasons for creating this separate entity is to transfer risk away from the individual and to the corporation. That being said why would this individual want to transfer risk right back to themselves by insuring this vehicle on a "personal" policy in their "personal" name!?!? Not to mention that with the vehicle being titled to the Corp this individual has no insurable interest in the vehicle as they do not own it . The way this individual has been advised to insure this vehicle will ultimately lead to no coverage at the time of loss. They are basically throwing their money away at this point!! This is a perfect time for you to step in and show that you have VALUE aside form providing and insurance policy. I hope this helps. Good Luck!!!

 

[tiffany8898]

This pickup is used for the corp, business use. Thank you for your responses, it is as I thought as well.