Legal Question in Insurance Law in California

Cancelled Auto Insurance policy

I purchased an auto insurance premium effective 11-05-98 with an expiration date of 11-05-99. The policy cost a total of $696.00 I paid $548.00 on 11/05/98. In December, one month later, I paid $74.00. In January I wrote a check for the balance due - $66.00. The check was not received in time for the "cut-off" date and time. My policy was cancelled.

It appears to me that as I paid the bulk of the premium up front and that as of 1-16, even though I did not have the last payment in, the policy was in fact paid for, for that month and for all subsequent months thru to 10-05-99.

My question: Can the Insurance company legally cancel me in this instance?

Thank you!


Asked on 2/15/99, 11:00 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Cancelled Auto Insurance policy

No. The policy has been prepaid at least through January.

But what about the return premium? Did you get a refund

along with the cancellation notice? If so, the answer

might be different. Generally an insurer is on the risk

as long as it is still holding your money - even though

it sent you a cancellation notice. Is your question about

the money you didn't get back or was there an accident

for which the insurer is denying coverage?

Steven Murray

Steven W. Murray, APC

16055 Ventura Blvd., Ste. 900


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Answered on 3/17/99, 9:20 pm


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