Can a insurance company take a big deposit and let you make3 months payments and for no reason just drop you and we signed a contract for a year.This

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 25, 2012

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Insurance Question from Fresno, CA

Asked on 07/25/2012

Can a insurance company take a big deposit and let you make3 months payments and for no reason just drop you and we signed a contract for a year.This NULL

Answer given on July 26, 2012

Insurance companies have different payment plans available. Most require a one or two month down payment and then allow you to pay monthly for the remaining balance. However, if you do not make the premium payments, the insurance company may cancel your insurance, with proper notice.You say they are trying to drop you for no reason. If there was a ticket or accident on your record that you did not declare when you applied for the insurance, and then the company found out, they could cancel you for withholding underwriting information. Also, if you received a major violation during the policy term, the company could non renew you, but could not cancel you midterm unless you lost your license.You should call the insurance company and find out why they have terminated your insurance. They had to give a reason, and a notice that they were cancelling. The notice is 15 to 30 days.


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