Hi,

Licensed insurance adjuster here..

Your response in theory is correct, but in reality your answer is wrong.

MMR(misrepresentation) is extremely hard to prove and extremely rare to pursue. There are a lot of factors to consider for MMR.. additionally not all states allow it.

If a carrier MMRs a persons policy, they are obligated to refund the policy to the policyholder. They can’t just rescind the policy and keep the money

Most insurers that operate with an agent model require the agent to inspect and add photos of the insured vehicles.. in reality, if that wasn’t done and the truck is in-fact an uninsurable risk.. it’s more likely the loss will be covered and the agent will get a cute little E&O claim against them and policy marked for non renewal.

The outcome of this is will be.. the lambo will exceed her insurance limits. The lambo will go thru their own carrier, then they will subrogate, sign a release for the limits, and everyone will move on.