Insurance Legaly Speaking
August 9th, 2008
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In car insurance as in any other form of insurance coverage, there exists what is commonly called as the doctrine of utmost good faith which forms as the founding principle for the execution of any insurance coverage. This doctrine accentuates the reciprocal faith that exists between the insurer and the insured. This doctrine is based on two principles; Duty of Disclosure and Representations and Warranty.
Duty of Disclosure simply states that the insured is obligated by law to disclose to the insurer any information that will have an influence on the issuance of an insurance contract. Representations and Warranty is a declaration executed by the insured that all information provided to the insurer are true and complete to the best of his knowledge and understanding.
What’s the Difference Between Cancellation and Renewal?
January 15th, 2008
Cancellation and non-renewal may seem like they have the same affect on you, but they are very different things. Cancellation is when the insurance company stops a policy before the end of its term. Non-renewal is when the company decides it will not allow you to continue your policy to a new term. The affects on your future insurance companies is not allowed to cancel a policy that has been in force for more than 60 days except: