Can My Insurance Company Cancel My Policy?

Oftentimes insurance companies will cancel policies without having the required reasons to do so. An insurance company is not allowed to simply cancel a policy out of the blue. Purchasing an insurance policy forms a contract between you and your insurance company. There are duties of the company along with the consumer when it comes to acting in good faith and following the terms of the agreement. Wrongful termination of a policy happens all too often and it is important to seek help if this happens to you. Get in contact with a Texas insurance bad faith lawyer from our firm today if you need representation.
There are three ways that an insurance company can go about cancelling a policy, including:
  1. Rescission: When your insurance company voids your policy back to the beginning. Your money will be returned to you and you will not have coverage.
  2. Cancellation: When your insurance company chooses to terminate a policy prior to the date of expiration.
  3. Nonrenewal: When your insurance company terminates a policy at the time of expiration.
An insurance company is able to cancel a policy within the first 60 days for just about any reason. After 60 days have passed there are few reasons that your insurance company can cancel your policy. One reason is if you do not pay the premium by the time it is due. Another reason would be if you obtained the insurance policy using methods of fraud or misrepresentation. Lastly, the insurance company can cancel your policy if there is an increase in the risk that they had accepted in the beginning.
To properly cancel a policy, the company has to send a written notice explaining their reasons for the cancellation. You are able to appeal the cancellation if you would like. A skilled Texas insurance bad faith attorney from Brasher Law Firm, PLLC is experienced when it comes to helping clients with their policy cancellation cases. Call today to see how we may be able to help you in your bad faith insurance case!