What to do if I paid my son’s insurance premium but was denied coverage anyway?

I renewed my son’s insurance on 10/31 and gave them payment for 2 months. The insurance company cashed my check on 11/20. On 12/10, I found out from the pharmacy that my son’s insurance was terminated. I contacted the insurance company and inquired about the problem. I was informed that coverage was cancelled because they did not process my application however, my payment was processed and I was paid up until the following month. The insurance company never informed that there was a problem yet they still cashed my check. Is this illegal what they did?

I have since then had coverage reinstated and the insurance company has admitted that it was an internal error.

Asked on December 11, 2015 under Insurance Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You write that the coverage was reinstated and the company admitted that  this was an internal error; in that case, there is nothing to do, since there is no harm. (Even when something is illegal, the law only gives you compensation when there is some harm, loss, injury, etc.)
That said, the answer is no: if they accept your premiums, you would be covered for the period of time covered by the premiums, so long as you (or the other insured; e..g. your son) did not breach the terms of the insurance policy. (A breach generally allows them to treat the coverage as terminated.)


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