Spousal exclusion - Mike Felder Insurance

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MIKE FELDER'S INSURANCE COLUMN
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MIKE FELDER'S INSURANCE COLUMN THUNDER PRESS SPOUSAL EXCLUSIONS OR HOW WIFE SWAPPING CAN BE FUN -------------------------------------------------------------------------------- I have always said that it is pretty important to understand what is not covered under your insurance policy. One of the more frequently overlook aspects of most policies is the "Spousal Exclusion" clause. This part of your policy basically says that your insurance will not cover any injuries or liabilities resulting from your negligence in the operation of your cycle while he/she is a passenger. In simple words...you dump your cycle, your spouse is injured, your insurance company does not pay. Spousal exclusions starting becoming a part of almost all type of policies some time ago. There is a good chance you can find it on your homeowner's policy. Also, it no doubt is part of auto policy as well. But, it rears it's ugly head a little more noticeably on your cycle policy. (While I don't necessary feel that operating a cycle is all that dangerous, I somehow feel that operating my home does possess a lower risk for my spouse). There is an old story around the insurance industry of a couple who had the misfortune of getting into an accident returning home from a party. Mrs. Jones wanted to sue her husband for not letting her drive the car home. She testified that Mr. Jones was intoxicated and driving recklessly and in a negligent manner. The insurance company had Mr. Jones testify in his defense. At that time, Mr. Jones supposedly said he was not only drunk, but on a pleasant blend of illegal drugs and couldn't remember a thing. The jury awarded Mrs. Jones a sizeable amount of money. Mr. Jones then drove his wife to the bank with their new found wealth. Almost immediately, insurance companies started to add "Spousal Exclusion" clauses. Their view was that spouses suing each other is almost like suing yourself. A domino effect happened and now, virtually all companies have this exclusion on their policies. Nice story Mike, but what does that have to do with wife swapping? Well, a friend of mine tells me that he now rides to major events with his friend. Each of them ride the other's spouse on their cycle. The reasoning is his wife has a major medical problem that only a small amount of hospitals can deal with. Should there be an accident, he knows his wife would have to be evacuated by helicopter to a major medical center. He jokingly says that he never wants to be in the position of having to decide if he wants pay the ten grand or so to hire to helicopter. He has faith in his friend's riding skill and knows if there is an accident, the helicopter ride for his spouse would be covered under the liability part. Besides sounding like a semi-interesting marriage, the rest sounds reasonable. Both friends have 100K of coverage for the passenger and have been riding together for years. Every year when the rallies and Sturgis come up, you can hear this guy talking about how he is looking forward to the wife swapping party. I have heard cases from people where the insurance companies have tried to exclude significant others because residing under the roof. Some companies try to make this sound like a spousal situation. Sorry to say, but there are companies out there that try to find new ways not pay claims....especially the larger liability claims. If you are residing with a SO (I guess that is Newspeak for significant other) a call to your agent would be in order. By no means am I trying to justify the position the insurance companies have taken on this issue. The purpose is only to make the reader aware of some of the fine print that may be hidden in your policy. As I stated earlier, it is sometimes more important to know what is not covered. We'll e at the Cow Palace for the motorcycle show Jan 6th-8th. Hope to see ya all!! And remember...the smart shopper is the educated shopper!!

Information in this article is probably correct as of the date it was written. Please check with your insurance agent or call Mike at 800-729-2537 before you make any life changing decisions based on what you read here. Comments are always welcome.