Insuring a Licensed Minor with Dual Households

A licensed minor with divorced parents lives between two homes and drives a car at each respective household.

Q: If the minor lives with one parent primarily and is listed on that parent’s personal umbrella policy, do they also need to be listed on the other parent’s PUP? Is there a problem if the child is listed on both umbrella policies?

Response 1: The application requires all members of the household to be listed. Whether a child who visits on weekends or some other basis qualifies as a “member of the household" is a legal question.

However, the application likely asks for all operators of insured vehicles. If the child regularly operates an insured vehicle, they need to be listed because insurance follows the vehicle, not the driver.

Response 2: If a child is a resident of both households, then any information absent from either application could be perceived as deliberate intent to conceal or misrepresent the facts.

Note, however, that PAPs with ISO language automatically cover them, whether they’re shown as a driver or not. Non-ISO PAPs may exclude non-listed drivers. The issue for most carriers is premium—they want all drivers listed so they can charge for them if they have access to the vehicles.

Response 3: Whether the minor needs to be listed on the secondary parent's policies depends on a) whether they want to have coverage under that policy, and b) the actual language of that policy.

If the secondary parent is satisfied with the coverage and limits under the primary parent’s policy, they don't have to be concerned. But if you’re the parent of a teenager, you probably want access to as much insurance as you can get.

Response 4: The status of a "resident relative" is critical in coverage determination decisions. A child may be living with a father, mother, grandparent, aunt, uncle or away at school—they may not reside at any one place the majority of the time. A child living in mixed residential situations needs to be disclosed to trigger auto, homeowners and umbrella liability coverage. 

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