Can an insurance company revoke an already issued policy?

[turtle]

What is the name of your state? California

I recently got into a collision that totalled both vehicles involved. My insurance company is now asked questions about the ownership of my vehicle and saying things like the policy is "pending" when in fact I was already issued the policy without a problem.

The issue seems to be that the registered owner of the car is my partner. Nowhere in signing up for the insurance policy was his information asked for. Now they are asking. I have a feeling that they are going to revoke the policy, saying I am not the registered owner.

But can they actually do this?

 

[racer72]

But can they actually do this?

Yes they can. Most if not all insurance companies require the registered owner to be included in the insurance, even if just an occasional driver.

 

[turtle]

What does that mean in terms of the pending claim? Does it mean I was in fact not insured? But why would they issue me the policy in first place? Again there were no questions about registration or ownership of the vehicle, and I thought that the policy was for me the sole driver of the vehicle.

 

[You Are Guilty]

Does CA law permit you to insure a vehicle in which you have no ownership interest? If not, then you have a problem.

 

[turtle]

It may be too early yet to determine if there is a problem or not. My insurance company has not actually said anything specific. However, in case there is a problem, wouldn't the responsibility reside with the insurance company? When issuing me the policy, if there was a need a proof of ownership, they should have asked for that information and verified it. They merely asked for my driver's license and checked my driving record. The issue of whether the car was in my name or my partner's never came up. Is that my fault? How could it be if no one notified me? And can they really now say I was uninsured when they took my money and issued me documents for proof of financial responsibility? What if I had never gotten into the accident? Would I have gone for months or years not knowing this information? Confused.

 

[ecmst12]

They can only retro-cancel a policy within the first 60 days after it is issued.

 

[turtle]

It is under 60 days. What is the procedure? Do they have to take some sort of legal action? What would that be? If I did nothing wrong, isn't it their oversight? Will I have to retain a lawyer and settle this before anything can be done about the vehicles? Is there a chance then that the other driver will sue me?

I really hope that this does not turn into some Kafkaesque nightmare. I am barely over the fact that I could have died, let alone turn around and find out that my insurance company is screwing with me.

 

[turtle]

Everyone I have spoken to has said it is not possible for the insurance company to worm their way out of this. They issued the policy and took my money so I was insured. If they issued the policy in error, that's their problem. They are the professionals not me.

Are any of you guys actually specialists in this type of law?

 

[tammy8]

Who is *everyone*?

Is your partner not on the policy anywhere? WHY not?

Did you read the binder &/or policy when you received it?

 

[ecmst12]

If they rescind your policy, they will refund your premiums.

Is "everyone you've spoken with" insurance agents, underwriters, or lawyers?

You need to read your policy very carefully.

 

[Zigner]

Everyone I have spoken to has said it is not possible for the insurance company to worm their way out of this. They issued the policy and took my money so I was insured. If they issued the policy in error, that's their problem. They are the professionals not me.

Are any of you guys actually specialists in this type of law?

Your policy is conditionally issued. It CAN be retroactively canceled if you made any material misrepresentation on your application. You represented that you owned the vehicle that you were insuring (that's called having an "insurable interest".) You do not own the vehicle. That seems like a pretty material misrepresentation to me...


(Where's Moburkes when you need her? )

 

[Zigner]

What if I had never gotten into the accident? Would I have gone for months or years not knowing this information? Confused.

More likely, you would have been issued a retroactive cancellation notice based on your misrepresentation of the ownership of the vehicle.

 

[turtle]

The point was that the only place I am hearing that this situation is my problem is here so I want to know why and find out more information. Like what does the insurance company do if they want to invalidate the policy? Do they take me to court? Or do they just cancel it and that's it, no recourse?

I signed up online for this policy on my own. It was my first time doing so. I didn't know that I had to be the registered owner; it never occurred to me. And it was not in the forms that I filled out. If that were key to getting a policy, you would think they would ask for registration information, which I would have provided. I wasn't hiding anything or lying. I followed the guidelines and was issued policy documents pertaining to proof of insurance. That's it.

 

[tammy8]

Again, WHY wasn't the owner of the vehicle listed on the orginal policy?


I am looking at a binder right now and one of the questions that HAS to be answered by the insured is *Is the applicant the registered owner of the autos to be insured?*

 

[Zigner]

I followed the guidelines and was issued policy documents pertaining to proof of insurance. That's it.

I'd bet large amounts of money that you didn't read the fine print on the web site...

And, just so you know...I'm giving you the benefit of the doubt. I actually believe this was a mistake, as opposed to a deliberate attempt to defraud the insurance company.