Can My Insurance Policy Be Cancelled?There are many instances where your insurance policy can be cancelled, either by you or by the insurance company. However, most policies are written for a specified term, and there are restrictions limiting when your policy can be terminated before that term's completion. Cancellation By the Insurance Company (the Insurer):Generally, the insurance company has no right to cancel your insurance policy unless the policy itself explicitly reserves and ensures their right to do so. A provision may be included in your policy that allows the insurance company to cancel your policy upon certain terms and conditions. In the absense of such a provision, the insurer will not be able to cancel your policy, unless there are valid grounds for cancellation. These might include: - if the insurance company discovers that you have made a fraudulent claim;
- if they discover that you lied or used false documentation in applying for the policy;
- any other factor that relates substantially to the risk you pose to the insurance company
Even where cancellation is allowed, either by a provision in the policy or based on other grounds, the insurance company will normally be required to give you notice of cancellation within a reasonable amount of time before your policy is terminated.
Cancellation By the You (the Insured):The policy holder can terminate an insurance policy at the end of the term by either: - failing to pay premiums once the designated term for the policy has run, allowing the policy to lapse
- cancelling the policy mid-term
Like the insurance company, you are not obligated beyond the term specified by your policy and can cancel your policy by simply not paying to renew it. In some cases, if you have paid for the full term and cancel before it is completed, you may be able to get your money back for the remaining period of the term.
In order to cancel your policy midterm, however, you will have to meet certain requirements. In alerting the insurance company of your desire to cancel your policy, it is important that you express that you want to cancel it immediately and not upon completion of the policy term. Do I Need to Contact an Insurance Attorney?If you believe your insurance policy has been unlawfully cancelled, or your insurance company is refusing to allow a proper cancellation, you should contact an insurance lawyer. Insurance policies are detailed and complex and an attorney with experience in dealing with insurance companies will be able to protect your rights. |
