Susan needed a car. Her boyfriend, Ron, found one, negotiated the price, arranged the financing and titled it in his name. However, he gave it to her to drive. She purchased a personal auto policy on the vehicle through State Farm Mutual. Susan was the only named insured. Ron's name never appeared on the policy.

Ron frequently drove the car with Susan’s permission. On one such occasion, he had an accident that resulted in injury to two persons. When Ron sought coverage under Susan’s insurance policy, it was denied. Because Ron actually owned the car, the court determined that Susan could not give him permission to operate his own vehicle. For this reason, he could not be covered under her policy.

Click here for more details on this court case.

If Ron and Susan had been married, Ron would have been a named insured on Susan’s policy and the accident would have been covered. When individuals live together as though they are married, they frequently own property jointly and regularly use it as their own. Society may recognize them as a family but that doesn’t mean insurance policies do.

Do you know who should be listed as a named insured on your customer’s policy?

Click here to review the General Information Section of the
Producers Personal Lines Risk Evaluation System Questionnaire.
It could be used to obtain this important information.

Insurance policies provide many benefits to married couples. However, those benefits end when a divorce or even a separation occurs. Each policy must be examined to ensure that each party’s assets are properly protected.

Click here for an interesting article that appeared in the Rough Notes magazine that explained how to analyze property coverage following a divorce.

Romance usually does not include practical discussions about such matters as whose name is on an insurance policy. Insurance agents rarely receive “we've decided to live together” announcements in the mail. The only way to be aware of a change is when your customer informs you. However, an article on your website or in your newsletter might at least trigger an inquiry.

Click here for an emarketing article you might consider posting on your website or including in a newsletter to encourage your clients to call you to discuss their personal lines coverage concerns.

Thanks to our customers' suggestions, The Producers Commercial Lines Risk Evaluation System continues to grow. These classes of business are the most recent additions:

Have you found what you need in the Producer OnLine? Is there a classification
to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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