You pay insurance premiums trusting that in times of need, the insurance company will provide the coverage you paid for and that you would not be able to afford otherwise. However, sometimes insurance companies will do whatever they can to avoid paying you the full amount you deserve. In some cases, they may go as far as to find a way to cancel the policyholder’s insurance without their knowledge.
In California, notice of termination is required by law, and failure to provide that notice constitutes an act of bad faith by the insurance company. Not only is this frustrating, but it can be financially devastating.
At Weinberg Law Offices, we focus on taking a stance against insurance companies that operate in bad faith through denial of legitimate claims or wrongful termination of insurance policies. We are committed to helping clients obtain the benefits they deserve. If your insurance company denies your claim or terminates your policy without notice, you need an experienced bad faith insurance attorney to help you fight for your legal right to compensation.
Can an Insurance Company Cancel Your Policy?
When an insurance policy cancellation occurs, it must be for a reason that falls within the state statute for that type of policy. Some of those reasons include non-payment of policy premiums, insurance fraud, or misrepresentation of material information on the insurance application. Other specified reasons are more nuanced depending on the type of insurance, which may include auto, home, health, renters, life, and others.
No matter what kind of policy is in question, you depended on the coverage you thought you were being provided, and you should not have to suffer because your insurance company acted in bad faith. A Los Angeles bad faith insurance attorney can help you understand if the cancellation was valid or if you have a legal argument against the insurance company’s action.
When Is Notice Required From Insurers?
Though it makes sense that if you fail to pay your premiums, your coverage can be terminated, you do have a grace period to make that payment past the initial due date that varies by insurance type and potentially other factors. After that period, the insurer is obligated to provide notice of the termination.
The amount of notice provided may differ depending on the reason for cancellation, as is the case for car insurance. If an insurer decides to terminate the policy because they believe fraud exists, they are still obligated to provide an official cancellation notice to the policyholder. The method of delivery of the notice may also vary based on the type of insurance and how long you have held the policy.
If your insurer cancels your insurance policy without proper notice, you may have a valid claim for bad faith, including a legal right to compensation. Your bad faith insurance attorney can help you understand your options and the value of your claim.
California State-of-Emergency Insurance Law
One specific law that bears mentioning is California’s State-of-Emergency Insurance Law. Because of frequent wildfire devastation, the state has issued a one-year moratorium for residential insurance policyholders impacted by natural disasters from when the governor declares a state of emergency. If the insurer terminates the policy during this time, they can be found in bad faith and in violation of a state mandate.
Contact a Bad Faith Insurance Attorney
The team of legal professionals at Weinberg Law Offices understands how stressful it can be to see the bills adding up when they should have been covered by your insurance company. No one should have to suffer because of greedy insurance companies. You deserve a bad faith attorney in Los Angeles willing to stand up against your insurer and aggressively pursue the compensation you are owed. We offer a free initial case consultation so that we can have a better understanding of your legal needs and determine how we can help. Contact us today to schedule your appointment.