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Old 01-28-2015, 10:55 AM   #19
Pau Hana
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City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
Quote:
Originally Posted by BandB View Post
And a reminder that lying to an insurance company or more politely misleading them is like handing them free money. They don't check out all you put on the application. But they do check when you file a claim. I knew someone who owned a car in NY. Registered it in SC at his brother's address and insured it there. Was in an auto accident in NY. Car was totaled. They investigated and refused the claim. When he said he was going to sue them, they did suggest he might prefer to just quietly walk away rather than deal with their counter of insurance fraud.
Indeed. This is the premise of operating under "uberrimae fidei" or "uttermost good faith". This means that all parties of an insurance contract must reveal all aspects material to the risk, even if not asked.

I can't speak as to the specific example given, but in the marine side, the questions pertaining to loss history, experience (ownership and operational), liveaboard status, etc., are all part of the underwriting process- and can lead to a denied claim and/or possible legal action if deception is discovered.
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Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!

1989 52' PT Overseas yachtfisher
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