by Guest » Wed May 23, 2012 10:45 pm
Six months ago my ex-husband removed himself from my policy and in doing so, removed the collision (not the comp) from my car as well. I am finding this out now because my son totaled my car and I have no coverage to have it settled/repaired. I have always auto-payed my premiums (the company deducts it directly from my account). At one point a couple months ago I had to call them because they forgot to bill me. They said that there was an issue when they switched over their computer system but "we've corrected the problem." I was never notified that the Collision was removed from my car, furthermore the car was financed until 9 months ago....so it HAD to have this coverage otherwise I imagine I would have rec'd a nasty email from my finance company. I am considering filing a DOI complaint for Bad Faith......any thoughts?
Posted: Thu May 24, 2012 12:49 am Post Subject:
I was never notified that the Collision was removed from my car
So you never thought anything of the lower premium? Perhaps you just thought it was nice of your insurance company to keep the same coverage but lower your rate for no reason part way through the policy?
I am considering filing a DOI complaint for Bad Faith
Six months ago my ex-husband removed himself from my policy and in doing so, removed the collision
Whoooo... I think you skimmed right over what started this whole mess! Why would he remove coverage? Was he listed on the policy as a named insured as well or perhaps even listed on the policy as your husband? If yes, then the insurance company correctly changed the policy as requested.Let's start here. So who's fault was it that 1) he changed the policy and 2) that he was allowed to change the policy? I guess the insurance company should have known he was not allowed to change his own policy? I guess they should have known that you did not want collision dropped? I guess they should question the relationship of all insured's before they make any changes to a policy as requested?
Now... lets move on to the point where your premium was lowered for 6 months and you never noticed this...
I have always auto-payed my premiums (the company deducts it directly from my account).
So this is the reason you never noticed the drop in premium? You never reviewed your bank account to see this change? Some how the insurance company his your monthly banking statements from you?
I am finding this out now because my son totaled my car and I have no coverage to have it settled/repaired.
People always only seem to find out what coverage they don't have _after_ an accident. It's odd how that works.
So I guess the insurance company is to blame for this whole situation. If you want to file a Bad Faith claim, feel free to file in small claims court or find an attorney who will take your case. Be prepared to answer all of the questions above.
Posted: Thu May 24, 2012 01:20 am Post Subject:
Okay...I assumed that the lower premium was due to the removal of another driver. WHy wouldn't the premium go down? He is NOT the NI, I am. In addition, why did I not receive correspondance with a new declarations page confirming the change? I went out of my way to make sure the billing continued even though they forgot...why did no one mention the change then? I would think that since he removed homself and HIS car that they would at least give me the courtesy to say "hey, By the way, the car that's left on the policy has comp, but your ex hubby removed the collision"
Posted: Thu May 24, 2012 01:32 am Post Subject:
.I assumed that the lower premium was due to the removal of another driver.
So you never bothered to confirm why the premium was lower.
In addition, why did I not receive correspondance with a new declarations page confirming the change?
I'm betting that you did. Notification would have been sent out. You can feel free to ask your insurance company for a copy of the notification and the Proof of Mailing. All of that stuff is done automatically. Ask them to provide you a copy of the letter they are required to mail to the lien holder informing them that collision coverage was removed.
why did no one mention the change then
Why would they? If someone calls them to discuss billing no one is going to go over every change to the policy that has been made to the policy over the prior several months.
they would at least give me the courtesy to say "hey, By the way, the car that's left on the policy has comp, but your ex hubby removed the collision"
Why? It's done all of the time and there is nothing unusual about that. No one in any industry is going to field a call and start questioning why every change had been made on a policy. There is no reason or need for that.Have you asked your ex-husband if he did indeed remove the collision coverage from your vehicle? Have you asked him why he would do that? It seems like a really odd thing for him to do. Have you asked your insurance company why they allowed him to remove coverage from your policy if he's not listed as a Named Insured?
You should also call the lien holder and see if they have any forced-placed coverage on the vehicle. Normally when this is done, you are billed for it.
Posted: Thu May 24, 2012 02:11 am Post Subject:
You may not be completely helpless; an insurance policy is a contract. Like any contract, mistakes can void certain terms and provisions. In this case, you would likely want to assert that a “mutual mistake” voided the cancellation of the collision coverage (the mutual mistake being the fact that your ex mistakenly removed your collision coverage rather than just removed himself from the policy). I’m not sure what state you live in, but a bad faith action might not be the appropriate remedy. Normally, bad faith requires a showing that the insurance carrier breached a known duty owed to the policyholder. Examples of bad faith include undue delay in handling claims, inadequate investigation, refusal to defend a lawsuit, threats against an insured, refusing to make a reasonable settlement offer, or making unreasonable interpretations of an insurance policy. Even though you might not be able to present a bad faith claim, you can still sue the insurance carrier for coverage or possibly even for breach of contract (under the theory that the insurance carrier should have provided you with notice of the cancellation of the collision coverage). You may wish to consult with an insurance attorney; ideally an insurance coverage attorney or even an attorney who specializes in bad faith lawsuits (even though you may not be able to present a bad faith claim). Many attorneys offer free consultations and can provide you with creative fee structures such as a contingency fee arrangement which wouldn’t require you to pay any fees unless that attorney makes a recovery for you.
Posted: Thu May 24, 2012 02:33 am Post Subject: reply
No, I never bothered to confirm WHY the premium was lower. Obviously I should have in this case. My assumption was that my ex had been removed and that's why the premium went down. My ex isn't exactly forth coming with help in this situation....once it became unlucrative for my 18 year old to live with him, he kicked him out. Now I support myself and two boys. If my Ins Carrier has proof (ie cert letter or email time and date stamped) then fine, that's my mistake...however, I do not remember getting either....or any correspondance for that matter. Why would they??? Because someone, other than their NI changed the policy maybe??
Crawford: I am in CA...all I want is for my COllision coverage to be in effect, I don't WANT to file a bad faith case or a DOI complaint but my carrier has been completely unwilling to help at this point. As cliche as it sounds, my ex took our business in the divorce and somehow I got stuck paying child support. Now I have both boys, no car, and I have to pay rent....I am frustrated and just need some good/useful advice
Posted: Thu May 24, 2012 02:39 am Post Subject:
Here is a link to the California Bar Association Lawyer Referral service, they might be able to put you in touch with someone who can assist you. Good luck
http://www.calbar.ca.gov/Public/LawyerReferralServicesLRS.aspx
Posted: Fri May 25, 2012 12:00 am Post Subject:
As tcope stated, any named insured can alter the coverage. Several recent appellate court decisions have held that "the first named insured" language used in many casualty policy forms has no legal effect, the same as if that language is absent entirely, and any named insured has the authority to act.
Posted: Fri May 25, 2012 06:38 pm Post Subject:
My gut feeling is anyone listed as insured can change the coverage. Better double check your coverage after you saw your premium dropped... especially if he is your ex
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