insurance claim gone wrong II?

[potsnpea]

What is the name of your state? California

Proceedings to enforce rescission:
After such rescission, the insurer may bring an action for declaratory or other relief to enforce the rescission. [See Ca Civil § 1691]

What does it mean for the insureer to bring an action for declaratory or other relief to enforce the recission?

and

How far back will they have to payback my premiums if they decide to recind on a claim?

 

[CIAA]

I believe Section 1691 reads:

"1691. Subject to Section 1693, to effect a rescission a party to the contract must, promptly upon discovering the facts which entitle him to rescind if he is free from duress, menace, undue influence or disability and is aware of his right to rescind:
(a) Give notice of rescission to the party as to whom he rescinds;
and
(b) Restore to the other party everything of value which he has received from him under the contract or offer to restore the same
upon condition that the other party do likewise, unless the latter is unable or positively refuses to do so. When notice of rescission has not otherwise been given or an offer to restore the benefits received under the contract has not otherwise been made, the service of a pleading in an action or proceeding that seeks relief based on rescission shall be deemed to be such notice or offer or both."

Now, assuming the company has a legal basis for rescission, you would be entitled to a refund of all premiums paid, less any benefits paid.

I suppose there could be reasons why an insurance company may feel compelled to file for "declaratory or other relief" : (1) benefits paid exceed premiums paid and the company wants money returned (2) you refuse to accept the rescission, or (3) perhaps if there is a third party involved or the contract "contestablility period" is due to expire.

We are not attorneys and do not give legal advice or legal opinions. Any opinions or comments in our response are based solely on our insurance administration and claims experience and should not be regarded as a substitute for professional legal advice.