Reconsideration period

[Niku]

What is the name of your state (only U.S. law)?
California

I am new to this site, and I don't understand how to use it, so I'll just ask my question and hope for the best. First of all, I live in California, and I may have to ask for a refund for an insurance policy I bought from a broker in Michigan, for a policy on my home in California. The term of the policy is February 13, 2013 to February 12, 2013.

I remember hearing about a consumer protection law that gives the consumer 30 days to reconsider his purchase. It's my understanding that this law requires the seller to make a refund if within the 30-days. I'm just wondering if this is a California law or a federal law. Also, if it's only a California law, I may have to rely upon Michigan law, so what are such laws commonly called?

 

[swalsh411]

I have never heard of such a law. That does not mean it doesn't exist, but I've never heard of it. Do the policy documents say anything about refunds?

 

[FlyingRon]

There's a California retail goods return policy law (but it's not strictly 30 days) and it doesn't apply here.

There's no strict California property insurance cancellation law. It should be spelled out in your policy. Most likely they will pro rate it for the time actually used (which would appear to be all of it in this case) less some administrative expense.

 

[Niku]

I have never heard of such a law. That does not mean it doesn't exist, but I've never heard of it. Do the policy documents say anything about refunds?

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Such a law does exist, but there's still the question of whether it's a National or California law. My guess is that it's a California law and that you don't live in California.

 

[Niku]

There's a California retail goods return policy law (but it's not strictly 30 days) and it doesn't apply here.

There's no strict California property insurance cancellation law. It should be spelled out in your policy. Most likely they will pro rate it for the time actually used (which would appear to be all of it in this case) less some administrative expense.

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Okay, thanks for the information. Now I know that the focus of the law is narrower than I had remembered. Retail sales, that sounds right. The broker probably won't object, anyway, but I just wanted to be prepared in case he did Oh, one last thing, I don't have a policy yet; in fact, there's a chance that the insurance company won't accept my business. Yeah, I did pay the broker, though. I guess I should have looked around a little more.

 

[Zigner]

What kind of insurance is this? It's likely that you can cancel and ask for a refund of the unearned premium. But, your contract may not allow it. For example, I have an aviation insurance policy that states in the contract that the full premium is earned upon inception of the policy. I can't get a refund on that.

 

[FlyingRon]

Property insurance on a California house would be governed by the California law (unless there was some preempting Federal law).
I gave the answer on California property insurance.

 

[racer72]

When you called the broker and asked, what were you told?

 

[latigo]

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Such a law does exist, but there's still the question of whether it's a National (sic) or California law. My guess is that it's a California law and that you don't live in California.

How can you justify representing to the OP that "such a law does exists" and yet do not know "whether it is National (sic) or California law"?

Also, I suppose the OP just thinks that he is living in California, since your "guess" is that he doesn't. (Then maybe that wasn't your best guess.)

Very strange response.

 

[quincy]

latigo, Niku is the original poster.

I think Niku may be referring to what is commonly called the "cooling off" period. California has laws that allow for a cooling off period for a variety of purchases (time shares, in-home sales, etc), letting purchasers have second-thoughts and letting purchasers back out of certain contracts without penalty. Several states have similar laws and there is also a federal law.

For information on buyer remorse (cooling off) laws (federal, California, Michigan), you can visit:

http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro03.shtm

http://www.dca.ca.gov/publications/legal_guides/index.shtml

http://michigan.gov/ag/0,4534,7-164-17337_20942-44718--,00.html