Is it legal to renew automobile insurance that is in the name of a deceased policy holde? I'm aware of a situation where a title was signed over as a gift to party B by party A, and party A died about a month later. Party B has never applied to have the title recorded at the bureau of motor vehicles and it has now been 3 months since party A died. The license plates have expired as well. The executor of Party A's estate has been paying the insurance premiums to keep the insurance valid, but my concern is that the insurance is still not valid and the insurance company would deny any claim made against the policy in addtion to considering it insurance fraud. Is a way around that to have the poicy ownership changed to "the estate of Party A" ? Or should Party B be advised to park the vehicle and/or return it do the executor of the estate until Party B can get the title transferred, pay for new plates, and take out insurance under Party B's own name?
Answer
There are laws on this. The new party is required to get a new title and register the car in his or her name. If he/she refuses, then he/she needs to immediatel give the car back to the executor for distribution with the decedent's other property.
The executor in no way should be paying the insurance. Is the buyer added to the policy as driver of the vehicle? If not, there is fraud and if the car is damaged or is in an accident with another vehicle, there will be problems. I hope the executor has protected him or herself by at least having a bill of sale or sosme other document reflecting that the deceased no longer owns the vehicle.
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