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false pretense, trick, and device

False pretense, trick, and device refers to an exclusion in the physical damage coverage portion of a garage coverage form eliminating coverage for losses the insured suffers due to the fraudulent acts of others.

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Examples of false pretense include a customer absconding with an automobile on the pretense of test-driving it, the insured selling an automobile and receiving a bad check for it, and the insured selling an automobile and being instructed to deliver it to the wrong party because of fraudulent instructions. The exclusion can be negated by adding false pretense coverage on the garage liability policy. This endorsement covers the insured when a covered automobile is taken in a fraudulent manner. It also covers losses caused by the insured acquiring an automobile from someone who did not have legal title to the vehicle. Coverage is most needed by automobile dealers but may also be desired for banks that sell repossessed autos to the public.