A state appeals court in St. Louis allowed General Motors Acceptance Corp. to seek insurance benefits for damage to a car it financed, even though the buyer who damaged the car turned out to be unlicensed.
According to the policy issued on a new 1996 Chevrolet Corvette, GMAC was designated to receive the proceeds if the vehicle was damaged.
The Corvette was seriously damaged in a single-vehicle collision four days after the policy took effect, according to the Missouri Court of Appeals. GMAC sought to collect about $35,000.
Windsor Insurance Co. denied coverage, claiming that the policyholder, Roger Roderick, had fraudulently failed to disclose several traffic violations on his application.
Not only that: 'He didn't have a driver's license. It had expired about two years before,' according to Windsor's lawyer in the case, David Bub of St. Louis. Bub said Roderick has failed to respond to the lawsuit.
GMAC sued the insurer in St. Louis County Circuit Court. Judge Patrick Clifford dismissed the case without a trial. However, the Court of Appeals reinstated the claim last month.
GMAC spokesman Jim Farmer said the company is pleased by the decision: 'We hope to prevail at trial, when the particular facts and circumstances of the dispute are more fully developed.'
No trial date is scheduled.