Garage Operations:
Provides coverage for bodily injury and property damage resulting from garage operations other than the ownership, maintenance or use of a covered vehicle.
2.Uninsured Motorist:
Provides coverage for bodily injury to authorized operators resulting from an accident caused by a person driving without liability insurance. (Dealer Only)
Truth in Lending & Federal Odometer Coverage
Provides coverage for negligent errors or omissions resulting from any civil violation of any federal, state, or local statutes regarding accurate odometer readings, disclosure of prior damage or disclosure of after market replacement parts.
Provides coverage for negligent errors or omissions resulting from civil violations of any federal, state or local truth-in-lending statutes
3. False pretense
Another potential uninsured loss that auto dealers can suffer involves fraud. For example, a customer trades in a late model Chevrolet and purchases a new car through Auto Dealer, Inc. Shortly after this, Auto Dealer sells the late model Chevrolet. About three weeks later, the state police arrive at the home of the person who'd purchased the late model Chevrolet. The car is confiscated by the state police because they identify it as a stolen car.
Here is how the scam is carried out. The perpetrator buys a late model Chevrolet from a junkyard. Then he steals an identical late model Chevrolet. After he switches the vehicle identification numbers from the junker to the stolen vehicle, he trades in the stolen car using the title and ID numbers from the junker.
This type of loss is referred to as a false pretense loss. Due to the use of a fraudulent scheme, the dealer voluntarily parts with the title to a vehicle. In another common scheme, the dealer signs over the title of a vehicle to someone who gives the dealer a phony check.
Upon reporting the loss to its insurer, the auto dealer learns that it does not have coverage for false pretense losses. False pretense coverage can be endorsed to a dealer's policy. |
