The question about if an insurance can cancel your policy is reoccurring on the internet many times. Therefore, this article is very important to our readers as it will help put their thoughts at rest on this topic. Insurance is a form of contract between an insurer and an insured individual who tends to enjoy some sorts of benefits according to the policy terms.
Since it’s a form of agreement, have it in mind that it can be cancelled when you go against the terms of the policy. There different forms of insurance offered in the U.S and around the world. All these types of insurances comes with contract thus a written policy which is to be read by the insured and appending their signatures to seal everything.
This policy or contract indicates the insurance premium an individual will pay based on the type of insurance, number of people covered and other factors and also starts what will lead to the termination of the contract. Also, the benefits you tend to enjoy are all stated in there.
Can An Insurance Company Cancel My Policy?
Based on the discussion from the beginning, you should be able to get the answer to this question easily. It’s as simple as ABC, yes; your insurance company can cancel your policy. Understand that insurance companies can’t just cancel your policy without any form violation or breach of contract.
Every policy contract provides information on what will lead to the termination or cancelling of your policy. The reason behind an insurance cancelling your policy will be stated in the policy contract. Insures notify their clients before cancelling their policies but the time frame varies based on the state you reside.
An insurance company can’t cancel your insurance on no other basis expect the ones provided in your policy contract. Any reason outside the contract is unacceptable.
Why Would An Insurance Policy Be Cancelled?
Your insurance company will cancel your policy on several reasons stated in your policy contract. Thus, if you don’t play according to the agreement, your insurer can cancel your contract and the common reason is nonpayment. When a policyholder fails to make premium payment for a period of time, the insurer can cancel the policy. Also, reasons like criminal records, making too many claims, change in situation and others can be a great point to cancel your policy.
Making false claims or providing fake information in order to make a claim can lead to cancelling of your policy.
How Does Policyholders Find out Their Insurance Policy is canceled?
Insurance companies who wish to cancel policies of insured persons notify them through phone, sms or email. However, the time frame for notifying clients of cancellation varies based on the state. Depending on the state, you can get 10, 20, 25, 30, or 45 days’ notice of cancellation.
When this happens, you can visit your insurance company and find out if the reason for cancellation can be resolved for deadline.
How to Solve the Problem of Policy Cancellation
Are you thinking of what to do when you receive a notice of policy cancellation? Such circumstance could weigh you down if you made several investments towards your insurance policy. In this case, there is only one option, visit your insurance and try to persuade them if you want them to keep your policy.
Find out the reasons for the cancellation notice and try to get a solution to the problem. Convince your insurer that this time things are going to be differently and will fulfill the agreement on the policy. And in case there is a change in situation, provide your insurer with the information they need.
In conclusion, your insurer has the mandate to cancel your insurance policy is you don’t go according to the policy contract. Any violation which falls within the stated reasons for cancellation will lead to them stopping your policy.
Before you accept to pay premiums on an insurance cover, read thorough and understand the contract. Take notice of the reasons for cancellation and go according to the policy if you want to work with your insurance company. Try avoiding cancellation if you want to keep your insurance policy with an insurance company.
The best advice is to avoid cancellation on your policy. In this way, you wouldn’t have issues with your insurer.