Dist. Ct. did not err in dismissing plaintiff-insured’s action, alleging that defendant-insurance company breached terms of insurance policy by failing to pay sales tax and title and tag transfer fees for replacement vehicle, where plaintiff had totaled his covered vehicle and had failed to obtain replacement vehicle. Dist. Ct. could properly find that neither terms of policy nor insurance law required payment of said fees/costs when insured does not incur them. Ct. rejected plaintiff’s claim that sales tax and title and tag transfer fees are always part of replacement cost in total-loss claims regardless of whether insured incurs said costs. Ct. also noted that under section 91980(c)(A)(i) of Administrative Code, insurance company is not required to reimburse insured for sales tax or transfer or title fees if insured cannot substantiate that he or she had paid said taxes and/or fees.
Federal 7th Circuit Court
Civil Court
Insurance