Insurance Cancellation

[Mei-Mei]

My state is Louisiana.

My close friend was in a car accident two years ago and he was injured. The driver of the other vehicle was completely at fault, but she had minimal insurance.

My friend's insurance policy covered underinsured motorists and they settled his case for $50,000.00 on December 27,2002. On that same day that cancelled all of his policies. They refuse to re-issue the policies because they say he has too many claims (he had two). Can they do this or is there any recourse? Cancelled insurance policies do not look good when you're trying to get more insurance.

 

[tammy8]

Yes an insurance company can cancel a policy due to claim activity. Every company has a specific number of claims an insured can file within a certain time period. It all depends on the underwriting guidelines of the company.

Tell your friend to try another company. Each company varies in the number.

 

[racer72]

Your friend will have to carry high risk insurance for at least 3 years (without any claims) before a standard carrier will insure your friend.

 

[Mei-Mei]

Thank you for the replies