You may not be aware that, years after you have prepared a separation agreement, it may have a direct bearing on whether your clients are covered under their auto or homeowners’ insurance policies in a variety of accident scenarios.
Here’s a typical scenario. Months or years after Mom and Dad are divorced, one of them hands the car keys to “Junior,” who negligently wrecks the car and injures another motorist. One or both parents, thinking that Junior is covered under their auto policy, turn the claim into their insurer, only to be shocked that the insurance company denies the claim.
There are two principal reasons why the claim might be denied: Junior is not a “named insured” or a “resident relative” under the policy. If the denial holds water, Junior and perhaps his parents may be exposed to personal liability, and the distinct prospect of bankruptcy. The question is: Is there anything the divorce attorney can do to ensure or increase the likelihood that minor children will be covered in a future accident under one or both parents’ insurance policies?
This accident scenario has been frequently litigated. Courts examining this issue have focused on what constitutes “residing” with a particular … Read More... “Divorce And Insurance Policies: What Divorce Attorneys Need To Know To Protect Their Clients”