[s-cars] CA warranties

[Robert Pastore]

"Welcome to the business of insurance."

I remember my first experience with insurance in my business.   My warehouse
in NC got hit by Hurricane Fran, causing about a $1.0 million inventory
loss.   My call to the Insurance Co. to seek help and ask how to proceed
yielded this quote that I'll never forget, "Act as a prudent uninsured"
..........telling; because they walked away from the claim.  Ouch.

Bob

-----Original Message-----
From: Raymond H. Tomlinson [mailto:rtomlins at vermontlaw.edu]
Sent: Tuesday, October 29, 2002 11:14 AM
To: s-car-list at audifans.com
Cc: mlped at qwest.net
Subject: RE: [s-cars] CA warranties


Mike et al,

Disclaimer:  The following is offered for informational purposes only,
and does not constitute legal advice nor create an attorney-client
relationship.  yada yada yada.

Insurance is a creature of state law (McCarran Ferguson Act), subject to
very limited federal regulation.  Thus, states granting Accel the
license to conduct the business of insurance may further grant Accel the
ability to specify which state law governs the policy.  Although you may
move to another state to establish domicile (legally divorced from the
term "residence"), nothing can prevent you from acquiring coverage based
on that domicile (Except states not licensing Accel).  However, if the
intent to relocate was simply to procure insurance, such fraud will
avoid the policy.

If you have a valid Accel policy and subsequently relocate to CA, the
state must offer full faith and credit to contracts entered into (e.g.,
employment, insurance, marriage) in another state.  Thus, Accel must
honor claims made in CA or other states not licensing Accel's
warranties.

Welcome to the business of insurance.

Ray Tomlinson


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