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Directors insurance claim history transfered to Corporate Trustee

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  • Real buzz
    Freshie
    • Mar 2007
    • 36

    #1

    Directors insurance claim history transfered to Corporate Trustee

    Recently I saw a house insurance policy with AMI in the name of Corporate Trustee company for a house which the trustee was in the process of buying. The house and the policy where changing over/transfering on the date of the annual renewal as it happpened. On reading the new policy once it had tranfered I saw that all of the personal claim history for a director of the B&H trustee was listed/transfered to that new policy. AMI say that the claim history was transfered because the director of the corporate trustee had also been a director of the LAQC (seller) and brought through the personal claims history for the record also.

    Do AMI have a right to do that i.e link personal & LAQC claim history to the policy in the name of the new corporate trustee? Should the limited liability Trustee company be subject to this treatment and be affected by a directors bagage this way?

    Its not a big issue (small claims for tenant damage) but I am suprized that the trustee company is affected this way. Your comments would be appreciated please. Aren't Assests & liabilities limited to those of the company e.g. the LAQC
    Cash flow positive properties Whangarei, Private Message for info. Double income property and subdividables - PM for a chat
  • JohnL
    Addicted
    • Feb 2004
    • 651

    #2
    Our insurance company looks at our claims history across all our entities. I hadn't really thought about it before, a bit like the banks look at the total picture when making lending decisions.

    John

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    • roseneath_rat
      Fanatical
      • Jun 2005
      • 1111

      #3
      Buzz, if in doubt disclose when it comes to insurance. I think it is pertinent to include the 'actual' risk experience rather than trying to be cute about individual trading entities. Wouldn't it be better to be straight up, rather than risking having insurance cancelled by your insurer with 14 days notice, and having to disclose THAT every time you try to get cover in the future?

      Comment

      • Real buzz
        Freshie
        • Mar 2007
        • 36

        #4
        Yes, no argument there, just appears that some aspects of trusteeship are ring fenced for asset protection and some aren't so there is a lesson to learn as to where the lines are drawn, thats all. Mmmm... I think there could be a few stories told on that subject.
        Thanks
        Buzz
        Cash flow positive properties Whangarei, Private Message for info. Double income property and subdividables - PM for a chat

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