Expert: Ron Cercone - 4/30/2009

Question
my insurers co are asking for a explanation as to why i have a undisclosed endorsement on my driving license before they will consider paying my claim this was a compleat oversite on my part due to serious family problems what can i do please help

Answer
Hello James,

What kind of "endorsement"? In the USA an endorsement is usually a designation to operate different kinds of vehicles in addition to a car, such as a motorcycle or a big truck or bus.

Most policies say the insurer can cancel your policy or deny a claim if there was misrepresentation in the application for insurance.

However in the law in most countries, it has to me a "material" or "relevant" misrepresentation. In other words, unless the item undisclosed could have contributed to your chance of having an accident or the accident in question, then the insurer can't use that to deny your claim. For example, the fact that you failed to disclose that you smoke cigarettes should not have anything to do with your claim if you were rear ended. But if you were lighting a cigarette while making a turn and caused an accident, then the claim could be denied for failure to disclose.

If the adjuster persists to deny based on a non material failure to disclose, then fight it or get a lawyer or sue in small claims court. Find out the law in your area.