QUESTION
Does a subrogation debt accrue interest? How? Can insurance coverage be denied for an accident my child caused if she wasnt listed as a driver?
Asked on May 14th, 2012 on Automobile Accidents - Virginia
More details to this question:
My daughter was involved in an auto accident some yrs ago. I had full coverage on my vehicle with Nationwide, but didnt list her as a licensed driver in my household, so they denied coverage. Because she was at fault for the accident, a judgment was placed against her for the amount that was paid by the other insurance company to its insured. She now has this ''subrogated debt'' (which continues to accrue sometype of interest) over her head and is required to get sr22 insurance to maintain a valid license. This doesnt seem fair or legal! Whats the point of insurance if it doesnt do its job when needed!?
1 ANSWER
Insurance & Worker's Compensation Attorney serving Towson, MD
at
Saltzberg & Schloss
Update Your Profile
It sounds like even though you had full coverage with Nationwide, because you did not list your daughter as a licensed driver then Nationwide denied coverage to your daughter. It is my understanding that what Nationwide did is allowed under the insurance regulations in Virginia. I suggest that you call the Office of the State of Virginia Bureau of Insurance in Richmond to confirm whether Nationwide was correct in denying coverage to your daughter. Assuming what Nationwide did was legal, then yes it is my understanding that the subrogated debt will continue to incur post-judgment interest until paid. Your daughter might want to consult with a debt collection and/or bankruptcy attorney to further explore her options as to this subrogate debt.
Answered on May 14th, 2012 at 10:30 AM