My client insures multiple vehicles on his auto policy with Cornerstone National Insurance Company. The auto insurance policy provides liability coverage for bodily injury liability, property damage liability for damage to other vehicles, and collision coverage for damage to his vehicles. My client’s friend, while driving one of his vehicles (with his consent), is alleged to have caused a multiple car accident. Two people were injured in the crash. Claims were submitted to Cornerstone for the collision damage to my client’s vehicle, as well as the personal injury claims.

Cornerstone filed a declaratory judgment action asking the court to void the insurance policy for what it believes were “material misrepresentations” in the application process. According to Cornerstone, my client failed to properly disclose on the application that his friend was a regular user of the vehicle, and the location where the vehicle involved in the crash would be garaged.

However, a close review of the questions and answers on the application shows that there was no misrepresentation at all. We have filed a counterclaim seeking a declaration that the policy provides coverage for all of the claims arising from the crash.

As with most of my insurance cases, if we win, the insurance company must pay all my fees and costs, and if we lose, I’ll work for free.