I filed a claim, and my insurance company ended up rescinding my policy because I supposedly didn’t exclude household members who are 14 and older. I honestly don’t remember being asked for this info, especially since I’ve had the policy for over two years. Is it legal for them to do this after I’ve been paying premiums for so long? I’d really appreciate any guidance.
They’re saying it’s a case of material misrepresentation, which is legal. When you first got the policy, there was likely a clause in the paperwork that said something like, “I have listed all household members over age 14.” Even people who don’t drive but live with you should typically be listed.
If they’re backdating the cancellation, they’ll probably refund what you paid from that date onward.
@Ellis
They only backdated premiums for four months, but I’ve been with them for over two years. Thanks for explaining!
Remy said:
@Ellis
They only backdated premiums for four months, but I’ve been with them for over two years. Thanks for explaining!
They’re likely backdating to your last renewal date, which is industry standard and legal. Insurance companies aren’t trying to scam people; they’re just following policy rules. As mentioned, not listing required people can be seen as material misrepresentation. To them, it could seem like you didn’t list certain people to get a lower rate.
@Westley
There aren’t any risky drivers in my household, and they don’t use my cars. I switched to AAA, and they don’t need that info either. My original policy doesn’t ask for non-driver household members, which is why this seems shady. Thanks for helping—it’s tough figuring out my next steps.
@Remy
So, just to clarify, you got the policy to cover everyone in your household who drives your cars. Are all those drivers listed in the policy paperwork?
Lex said:
@Remy
So, just to clarify, you got the policy to cover everyone in your household who drives your cars. Are all those drivers listed in the policy paperwork?
Yes.
Lex said:
@Remy
So, just to clarify, you got the policy to cover everyone in your household who drives your cars. Are all those drivers listed in the policy paperwork?
Yes.
Then who was driving that wasn’t listed?
@Lex
The driver was covered and listed on my policy.
Remy said:
@Lex
The driver was covered and listed on my policy.
If the driver was listed, I don’t get why they’re denying it over an exclusion issue.
Remy said:
@Lex
The driver was covered and listed on my policy.
If the driver was listed, I don’t get why they’re denying it over an exclusion issue.
No one was actually excluded.
Remy said:
@Lex
The driver was covered and listed on my policy.
If the driver was listed, I don’t get why they’re denying it over an exclusion issue.
They’re saying it’s about household members 14 and over who I didn’t exclude, even though they don’t drive or have licenses.
This doesn’t feel right. Does anyone know a lawyer who could help with this?
Remy said:
This doesn’t feel right. Does anyone know a lawyer who could help with this?
What they did is pretty standard and legal. A lawyer likely wouldn’t be able to change much here.