What Does Rescinding an Insurance Policy Mean?If your insurance policy is rescinded, as opposed to cancelled or terminated, it will be as if the agreement made between you and the insurance company was never made. Therefore, instead of canceling the policy midway, you will go back and start from the beginning as if you never had the policy. You should get back any premiums you have paid to the insurance company, instead of money back only for the remaining portion of the term, as you would if the policy was cancelled. Rescission is normally done by the insurance company and involves the following: - giving notice of the rescission to the insured (you), and
- repayment to you of any premiums that you have paid on the policy
When Can an Insurance Company Rescind My Policy?
Generally, an insurance company can only rescind your policy if you have done one of the following things: - lied in applying for your insurance coverage
- concealed/hidden information when applying for insurance coverage
- made mistakes in applying for coverage that would significantly affect their willingness to insure you
- make a fraudulent claim for benefits
Can I Rescind My Insurance Policy?
Though rescission of a policy is most commonly done by the insurer, this remedy is available to you also. Rescission by the policy holder (you) is rare, however, and will only generally be allowed where the insurance company tricked you or fraudulently influenced you into choosing a certain policy. Should I Contact an Insurance Attorney?Insurance policies can be extremely complex and difficult to navigate on your own. If you want to rescind an insurance policy or believe that your insurance policy has been rescinded unlawfully, an attorney experienced in dealing with insurance companies and their policies will be able to preserve your rights. |
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