by jrichards » Wed May 22, 2013 01:55 pm
that wrote a check for the deposit to start the policy. Coverage was bound than the insured check bounced. The carrier will not flat cancel the policy because of the state filing for a limousine company. I contacted the state and they said there was no filing made. The insurance company said still will not cancel the policy flat because they sent the filing to the State. I was told that there is a statue that if no money is received than there is no coverage?
Posted: Wed May 22, 2013 02:13 pm Post Subject:
I was told that there is a statue that if no money is received than there is no coverage?
The insurance company received your payment in good faith. While you may not have current coverage, you rightfully owe the insurance company for the few days coverage was extended. That's why you are not necessarily entitled to a "flat cancellation" and "full refund" of premiums paid.
Additionally, if it can be shown that you knew the check would not clear the bank when written, many states allow the recipient of that check to sue the writer for up to three times the amount of the check as damages. CA is one of those states.
As for being told about a "statute" . . . you don't mention what state this takes place in, and the fifty states + DC all have different insurance laws, so there is no way to know what you think or were told is true or not.
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