Articles Posted in General

Grand Prairie insurance attorneys and those in Irving, Duncanville, Arlington, and other places in Texas need to understand issues that can arise related to the expiration of an insurance policy.

A Texas Supreme Court opinion decided in 1985, said that an insurance agent who receives commissions from a customer’s payment of insurance policy premiums has a duty to reasonably attempt to keep the customer informed about his or her insurance policy expiration date upon receiving information regarding the expiration date intended for that customer. This case is styled, Kitching v. Zamora. An Amarillo Court of Appeals case held in 1992, that an agent had a duty to reasonably attempt to keep a mortgagee informed about the policy expiration date and non-renewal. This case was styled, Horn v. Hedgecoke Insurance Agency.

A 1990, Dallas Court of Appeals case says that when the insured “forfeited” (i.e., cancelled or non-renewed) an insurance policy and the insurance company has knowledge of the existence of facts that constitute forfeiture of the policy, an unequivocal act done after the forfeiture has occurred, that recognizes the continued viability of the policy or that is wholly inconsistent with a forfeiture, constitutes waiver of the forfeiture. This case is styled, Schachar v. Northern Assurance Company. To bring about a waiver of the forfeiture and reinstatement of the policy, three conditions must be met:

Dallas attorneys need to know the different ways that insurance policies can be cancelled and who can cancel them.

Here are a few ways of cancellation a person needs to know about.

The 1967, opinion, Ford Motor Credit Company v. Commonwealth County Mutual Insurance Company, tells us that the insured may cancel an insurance policy by giving the precise notice required by the terms of the policy. This opinion was written by the Beaumont Court of Appeals.

Parker County attorneys need to know when an insurance company can properly cancel a policy and when it can not.

Insurance companies may cancel policies described on the January 5, 2013, blog at this site in the following situations:

(1) if the named insured does not pay the premium, or any portion of it, when due;

Weatherford insurance attorneys need to know the required notices to be sent by an insurance company when canceling a policy.

When an insurance company decides to cancel the liability coverage, it must deliver or mail to the first-named insured under the policy, at the address shown on the policy, notice of cancellation not less than the 10th day before the date on which the cancellation takes effect. This rule is found in the Texas Insurance Code, Section 551.053. The notice shall state the reason for the cancellation. The statement must fully explain any decision that adversely affects the policyholder by denying him or her coverage or continued coverage and must:

(1) state the precise incident, circumstance, or risk factor applicable to the policyholder that violate the guidelines;

Dallas insurance lawyers need to know the limitations related to canceling insurance policies.

Here is some guidance:

As described below, the Insurance Code limits the insurer’s right to cancel coverage under the following types of liability insurance coverage:

Fort Worth insurance lawyers need to know how to determine whether or not an insurance policy has been cancelled properly.

Insurance policies often contain provisions regarding cancellation.

An insurance policy may include a provision making cancellation effective upon the insurer’s mailing notice to the insured. The Houston Court of Appeals, 1st District, ruled in 1988, “The Policy or any Insuring Agreement may be cancelled by the Company by mailing to the Insured at the address shown in this Policy written notice stating when not less than fifteen days thereafter such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice.”