why would a insurance company ask for a signed power of attorney

Insurance companies ask for power of attorney in order to legally move the vehicle's title without having to get the owner's explicit permission each time the company needs to fill out a form, or so the company can sell the totaled vehicle to a salvage yard to compensate the driver.

Full Answer

Why do insurance companies ask for power of attorney?

Insurance companies ask for power of attorney in order to legally move the vehicle's title without having to get the owner's explicit permission each time the company needs to fill out a form, or so the company can sell the totaled vehicle to a salvage yard to compensate the driver.

What Is a Power of Attorney?

When it comes to legal, financial, and health matters, individuals are generally the only ones who can make important decisions on their own behalf. When an individual legally gives another person or entity the ability to make binding decisions for them, they are giving that entity or person power of attorney.

What happens when an insured vehicle is totaled?

When an insured vehicle is totaled, the insurance company is basically forced to "buy" the vehicle from the owner. The amount they pay is the amount of compensation the driver receives, minus any fees, taxes, etc.

Does a power of attorney cover car insurance?

Additionally, the power of attorney granted to insurance companies is generally limited and covers only the necessary activities for fulfilling a car insurance claim.

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Do you get salvage monies if you are uninsured?

If the insurance carrier pays you the FMV of the totaled vehicle - then they own the car and are entitled to the salvage monies - not the owner. I have never heard that the owner gets the salvage monies unless they are uninsured. To the contrary, the insurance company always gets the salvage monies.

Who issues a check payable to an attorney?

Typically, the insurance carrier issues the check made payable to the client and the attorney both named as the payees. Attorneys often ask the client to sign a written authorization to allow the check to be deposited in the attorney's escrow account and the proceeds distributed from that account.

Is it normal for a lawyer to endorse a check?

Perfectly normal. Your lawyer is simply saving you a trip in to the office to endorse the check.

Why Do Your Customers Need to Submit Power of Attorney Forms?

Your customers must submit a power of attorney form with their bond to confirm with the obligee that the bond is valid. Obligees typically understand how surety bonds work, after all, they’re the ones requiring them in the first place. Therefore most obligees are privy to the fact that surety bonds are oftentimes underwritten and issued through a third party. If your customer does not submit the relevant power of attorney documents with their bond, the obligee will most likely not accept it, as there is no way to verify the individual who signed the bond has been appointed by the surety company. BondExchange will provide your customers with the relevant power of attorney documents, and your customers simply need to attach them to their bond form prior to submission.

How Can an Insurance Agent Obtain a Surety Bond?

BondExchange makes obtaining surety bonds easy. Simply log in to your account and use our keyword search to find your bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.