Wrongful Repudiation of an Insurance Policy

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What Is Wrongful Repudiation of an 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 completely canceling an insurance policy, an insurance company has also wrongfully repudiated an insurance policy if they:

What Can I Do If My Insurance Policy is Wrongfully Repudiated?

Most states allow you to sue an insurance company if the company has wrongfully repudiated your insurance policy. The majority of lawsuits for wrongful repudiation of an insurance policy are based largely on breach of contract law. There are generally three different approaches that a victim of a wrongful repudiated insurance policy can take:

  1. Treat the insurance policy as terminated, or rescinded, and sue for any appropriate damages,
  2. Sue the insurance company to enforce the existing policy, or
  3. Wait until the terms of the insurance policy have matured and sue the insurance company for damages.

A few states even allow you to rescind an insurance policy and sue for damages if the insurance company has not yet actually wrongfully repudiated on the policy, but you have reason to believe that they will do so in the future. This action 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 in a wrongful repudiation lawsuit are slightly different that those available for a breach of contract case. In most cases, damages for a wrongful repudiation lawsuit can include:

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 experienced 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: 09-10-2014 10:11 AM PDT

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