GEICO Loses Appeal that Sought Coverage From Another Insurer for Lamborghini Crash
In a dispute between two insurers, a federal appellate court ruled that GEICO is solely liable for the cost of replacing a Lamborghini worth more than $100,000 that was totaled in a collision with another vehicle.
A panel of the 1st Circuit Court of Appeal rejected GEICO’s argument that Ameriprise Auto & Home Insurance should share in the cost because it insured the other vehicle involved in the crash near Tampa, Fla. and had improperly rescinded coverage. In an opinion written by Chief Judge Jeffrey R. Howard, the court found that Philip and Claudia Feldberg “snowbirds” who split their time between Massachusetts and Florida had violated the terms of their insurance contract by failing to notify the carrier that their Toyota Highlander had been left behind in Florida, where it was regularly operated by a relative.