Expert: Claims Guy - 10/31/2010

Question
The construction company that I work for bought me a new F-150 work truck in 2005, as I am a project manager for their jobs. The truck was registered in the company's name and was insured by the company also.  6 months ago a made an offer to by the truck in which the company agreed.  We transferred the title into my name and sent in all the proper paper work to DMV.  The company said that they would still keep the truck under their insurance policy for me as a small perk.  I recently sent in a payment for my registration renewal, but received a replay from DMV that they did not receive the required proof of insurance. (the company sent in the payment) I responded to their request and submitted my proof of insurance on line to the DMV, but it responded by saying that it was unable to validate the policy information which I had sent.  This is a weekend and I am not able to find a 24hr phone # to inquired whether or not my truck has a active insurance policy still in effect from the company.  Is there any way that I can find out whether or not my truck has an insurance policy in force?.  The company keeps telling me that I am covered, but something just doesn't seem right!!!!  I have my glove box insurance card with all the information and policy #.  I states that my insurance policy is effective thru April of 2011.  I have tried to research online to find out if I can verify the status of my policy, but no luck.  The insurance company is PRAETORIAN INSURANCE CO., policy #PICCA0001039, with a comnpany #37257.  Is there any way that I can find out if this policy is still in force, or do I have to wait until Monday to call and agent.  I have to take a trip tomorrow and I am worried as to if I am covered with insurance.  Please help if you can..THANKS, Tom

Answer
Here is the problem:  the policyholder (your employer) has no insurable interest in the property (your tuck).  This is a basic tenet of insurance law.  You cannot insure property for which the policyholder has no insurable interest, because the policyholder has an incentive to destroy the property and collect the benefits.

It appears there was some misunderstanding between your employer and the insurer as to wo owns the vehicle.  The safe way to handle this would be for yu to get your own insurance and have your employer reimburse you for some or all of the cost.

If I were you, I would not drive the truck until I knew for sure it was covered.  I would either rent another vehicle, or call a 24 hour inurer and get a policy binded over the phone over the weekend.

Monday, call Praetorian, explain all of this, and ask if you are really covered.  I think it is very unlikely.  They probably think the car is still owned by your employer.  Even if they issued the policy based on incorrect information, they can deny coverage should an accident occur.

I suspect your employer does not understand this.