§ 1985 Insurer Liability For Abandonment

If an insurance company says no when you properly abandon a damaged item, they must still pay you as if the item were completely destroyed, but they can subtract any money you already got from selling the junk.

Key Takeaways

•The insurer must treat a refused abandonment like a total loss.
•They can deduct any salvage money the insured already received.
•This applies only when the abandonment is legally valid.

Example

You crash your car, it’s a total wreck, and you decide to abandon it and sell the scrap for $600. The insurer says they won’t accept the abandonment.

Even though the insurer refused the abandonment, they still have to pay you the full value of the car minus the $600 you already received from the scrap sale.

If an insurer refuses to accept a valid abandonment, he is liable as upon an actual total loss, after deducting from the amount of the loss any proceeds of the insured subject matter which have come to the hands of the insured. (Enacted by Stats. 1935, Ch. 145.)

Key Takeaways

•The insurer must treat a refused abandonment like a total loss.
•They can deduct any salvage money the insured already received.
•This applies only when the abandonment is legally valid.

Example

You crash your car, it’s a total wreck, and you decide to abandon it and sell the scrap for $600. The insurer says they won’t accept the abandonment.

Even though the insurer refused the abandonment, they still have to pay you the full value of the car minus the $600 you already received from the scrap sale.

Key Takeaways

Example

Key Terms

References

§ 1985 Insurer Liability For Abandonment

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References