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short-rate cancelation fee

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KyWildcat

Junior Member
I am in Kentucky. I had a fire and casualty policy with Acuity Insurance. On December 12, 2006 they notified me of a 17% premium increase. Excluding weekends, this only left me with 13 days to shop the policy with other companies. The policy was $14,000 per year and had 30 houses on it. There is no way one can obtain a comercial policy of this size in 13 days. This left me with three choices: 1) Renew the policy at the higher rate 2) go without the insurance until I could find over placement policy, or, 3) renew the policy and then cancel when I found a better rate from another company. I renewed the policy, found a better rate, and then canceled on March 1, 2007. the insurance company charged me a $1057 short rate cancellation fee for canceling before the end of the term.

I filed suit to get the money back acting as my own attorney. The insurance companies' attorney filed a "motion to dismis" on the grounds that the short right cancellation factor is perfectly legal. Under normal circumstances I would agree. I argue that my insurance company knowingly gave me inadequate notice of premium increase, thereby forcing me to renew, or go without insurance, or pay their thousand dollars fee.

The judge tabled the matter for two weeks and told the insurance company to bring back proof that the short rate cancellation factor was legitimate. What law can argue that the insurance company had no right to charge a short right cancellation fee in lieu of the inadequate notice of premium increase given? My imediate goal is just to get this to a jury trial. I need somthing to get the judge to overule their motion to dismis. matt
 


moburkes

Senior Member
Laws tell you what you CAN'T do, not what you can. So, you won't be able to find that law. Also, if you look at your policy, the short rate cancellation is listed in there.
 

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