Fort Worth insurance lawyers need to know how to determine whether or not an insurance policy has been cancelled properly.
Insurance policies often contain provisions regarding cancellation.
An insurance policy may include a provision making cancellation effective upon the insurer's mailing notice to the insured. The Houston Court of Appeals, 1st District, ruled in 1988, "The Policy or any Insuring Agreement may be cancelled by the Company by mailing to the Insured at the address shown in this Policy written notice stating when not less than fifteen days thereafter such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice."
In that Houston case the court said that when the parties have contracted for terms of cancellation in an insurance policy and have expressly agreed that mailing of notice is sufficient proof of notice of cancellation, the cancellation is effective when the notice is mailed, even if the addressee never actually receives it.
The Texas Insurance Code authorizes the Texas Department of Insurance to prescribe and enforce rules and regulations regarding the cancellation of certain liability, property and casualty, and other insurance policies. Guidance can be found in Sections 551.001(a), 551.055, and 551.109. Section 551.001(b) says the Texas Department of Insurance should consider the reasonable needs of the public and the operations of insurance companies.
Under this authority, the Commissioner of Insurance has adopted rules restricting cancellation of certain property and casualty policies, including automobile and homeowners. These can be found at 551.051 to 551.056, 551.101 to 551.112, and 551.151 to 551.152.
Another thing to know is that upon request by the policyholder or applicant, the insurer must give the policyholder or applicant a written statement of the reason or reasons for declination, cancellation, or non-renewal of any policy, other than policies subject to Sections 551.051 to 551.055 and 551.101 to 551.112. The statement must fully explain any decision adversely affecting the policyholder by denying him or her coverage and must:
(1) state the precise incident, circumstance, or risk factor applicable to the policyholder that violate the guidelines;
(2) state the source of information the insurer relied on regarding the incident, circumstance or risk factor; and
(3) specify any other information deemed relevant by the Commissioner of Insurance.
As can be seen. If your policy cancels and you do not like that fact for whatever reason, then it is time to consult with an experienced Insurance Law Attorney to see if the action of the insurance company is proper.