Legal Question in Insurance Law in Arizona

Insurance

I requested a business insurance quote from an insurance company and received one. I never accepted the terms of the policy and never paid the premium. They sent me bills which by the way never matched the original quote. I ignored them thinking they would get the point that I was not interested in the policy. They sent me a cancellation notice and I thought great they finally got the point that I don't want their policy. I am now getting collection agency bills. I have contacted the company telling them I never wanted the policy that it was a quote only that I requested. They never issued me a policy and I never paid their initial bill. It is my understanding that had I wanted or agreed to their terms I would have paid the bill and that would have constituted an issuance of the policy. That never happened and in recent correspondence with them they still refuse to cancel the policy that never was issued and they say I am liable for the cost of the policy which I thought was only a quote. I'm perplexed as to what to do next. Thanks very much for your help.


Asked on 2/13/07, 12:51 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Insurance

If you had them issue a binder, you are responsible for the insurance during the time it was in force. If it was only a quote, there is no responsibility for payment.

Contact the insurance company directly and present the facts to them. You can also file a complaint with the Arizona Department of Insurance. File an explanatory letter with the credit bureaus that it is not a legitimate debt. If the insurance wrongfully bills you there might be a claim for "bad faith" against the insurance company. There are attorneys who limit their practice to this kind of claim.

Good luck.

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Answered on 2/14/07, 12:08 pm


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