Following a motor vehicle accident involving an uninsured driver who struck a pedestrian, the driver and her spouse sought a declaration that the spouse’s automobile insurer was required to indemnify them after the spouse added the vehicle to his existing policy the day after the accident.
The insurer alleged the addition was obtained through intentional misrepresentation, including false statements about ownership and the failure to disclose the prior accident.
The court found the spouse had no insurable interest in the vehicle and that both individuals engaged in a scheme to deceive the insurer by backdating coverage and concealing material facts.
Under s. 233 of the Insurance Act, their right to recover indemnity was forfeited due to fraud and false statements.
The action was dismissed and the uninsured motorist insurer was required to respond to the personal injury claim.
