75 cars, $2,750,000 limit – no coverage |
Ron Drendel was the trusted dealership manager of Joe Cotton Ford, Inc. In that capacity, he regularly took trade-ins off premises and sold them. However, instead of giving the proceeds to the dealership, he kept them for himself. Over a period of years, these transactions earned him over $1,000,000.
He admitted to this scheme in 2005, at which time Joe Cotton Ford filed a claim to recover damages under its garage coverage form that had a $2,750,000 limit. The insurance company denied coverage because of the garage coverage form's false pretense exclusion. Joe Cotton Ford refused to accept the denial, arguing that it didn’t voluntarily part with anything – Ron did.
Although the argument was interesting, the courts agreed with the insurance carrier. The garage coverage form excluded Ron’s actions.
Click here for more details on this court case. |
What coverage does garage physical damage provide? |
Garage physical damage covers all owned vehicles on the named insured’s premises. Instead of covering each vehicle individually, all vehicles are covered up to a specific blanket amount. In this case, it was $2,750,000.
Click here to review the PF&M garage coverage analysis. |
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ACORD has added a number of new applications, claim notices, certificates of insurance and change request forms specifically for the aviation industry:
5–Aircraft Loss Notice
6–Aviation Witness/Passenger Schedule
7–Aviation Injured Schedule
20–Certificate of Aviation Liability Insurance
21–Certificate of Aircraft Insurance
275–Aviation Insurance Binder
276–Aircraft Insurance Binder
333–Aircraft Schedule
335–Aviation Policy Change Request – Applicant Information Section
336–Airport Property Change Request
337–Airport and FBO Liability Change Request
338–Private Hangar Liability Change Request
340–Aircraft Change Request
341–Pilot Experience Change Request
342–Hangar Change Request |
