Wrongful Repudiation of Insurance Policy Lawyers
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What is Wrongful Repudiation of Insurance Policy?
Wrongful repudiation of an insurance policy is the illegal action by an insurance company of canceling a health, life, automobile, or property insurance policy. Aside from all-out canceling an insurance policy, an insurance company has also wrongfully repudiated an insurance policy if they:
- Deny the existence of an insurance policy,
- Refuse to comply with an existing insurance policy,
- Seek to change to terms of an existing insurance policy without your consent,
- Intend not to perform their obligations under an insurance policy,
- Fail to adhere to the established customs as related to the insurance policy, or
- Fail to renew an insurance policy for no reason.
What Can I Do If My Insurance Policy is Wrongfully Repudiated?
Most states allow you to sue an insurance company if they wrongfully repudiate your insurance policy. Most lawsuits for wrongful repudiation of an insurance policy are based largely on breach of contract law. There are generally three different approaches a victim of a wrongful repudiated insurance policy can take:
- Treat the insurance policy as terminated, or rescinded, and sue for any appropriate damages,
- Sue the insurance company to enforce the existing policy, or
- Wait until the terms of the insurance policy have matured and sue the insurance company for damages.
A few states allow you to rescind an insurance policy and sue for damages if the insurance company has not yet, but you have reason to believe that they will, wrongfully repudiate the policy in the future. This is called an anticipatory repudiation. You should take extreme caution in this area, because it could end up that you are the one in breach, and the insurance company could sue you.
What Can I Recover?
Even though a lawsuit for the wrongful repudiation of an insurance policy is very similar to a breach of contract case, the damages available are slightly different. In most cases, they can include:
- Any damages you suffered during the time you were covered by the insurance policy, including monetary loss and pain and suffering,
- Punitive damages against the insurance company,
- Damages prescribed by a statute,
- The benefits you have forthcoming under the policy minus the premiums you paid, or
- Recovery of all the premiums you paid, but none of the benefits you are owed.
Do I Need an Attorney if My Insurance Policy is Wrongfully Repudiated?
If you think your insurance policy was wrongfully repudiated, it is strongly recommended that you contact an attorney who deals with insurance law. Only an attorney will be able to adequately explain the issues and help defend your rights.
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Last Modified: 10-28-2011 02:23 PM PDT
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