Parker County attorneys need to know when an insurance company can properly cancel a policy and when it can not.
Insurance companies may cancel policies described on the January 5, 2013, blog at this site in the following situations:
(1) if the named insured does not pay the premium, or any portion of it, when due;
(2) if the insured submits a fraudulent claim;
(3) if the Texas Department of Insurance determines that continuation of the policy would result in a violation of the Insurance Code or any other law governing the insurance business in Texas;
(4) for policies other than personal automobile insurance policies, if there is an increase in the hazard covered by the policy that is within the insured’s control and that would produce an increase in the premium rate of the policy; and (5) for personal automobile insurance policies, if the driver’s license or motor vehicle registration of the named insured or any other motor vehicle operator who resides in the same household as the named insured or who customarily operates an automobile covered by the policy is suspended or revoked (but not if the named insured consents to an endorsement ending coverage for the suspended person).
Cancellation under certain circumstances described above does not take effect until the 10th day after the insurer mails a cancellation notice to the insured.
In addition, the insurance company may cancel a personal automobile policy:
(1) if the policy has been in effect less than 60 days; or (2) if the insurance company mails to the named insured written notice of the cancellation not later than the 30th day before the effective date of the cancellation, with the cancellation taking effect on any 12-month anniversary of the original effective date of the policy.
This is found in Section 551.104(e) to (g).
Finally, the insurance company may cancel any policy, other than a personal automobile liability policy, if it has been in effect less than 90 days.
This is found in the same statute.
It can be confusing trying to figure out which if any of the statutes your particular situation may apply to. That is why an experienced Insurance Law Attorney needs to be consulted sooner rather than later. Complaints can be filed with the Texas Department of Insurance, but it is a rare and slow process to get anything accomplished.