Leagl Action for Stop Payment on Insurance Policy

Date: Fri, 07/30/2010 - 09:35

Submitted by Aloha Kitty
on Fri, 07/30/2010 - 09:35

Posts: 10 Credits: [Donate]

Total Replies: 5

I recently purchased a car and went to get car insurance. I went to Freeway Insurance and had to put down a large down payment of $469.00. When I got home I thought that was kind of steep. So I did a search online 2 days later and signed up with GEICO...much cheaper and no down payment. So I called my bank to put a stop payment on the check. I then called Freeway Insurance and asked for the rep who signed me up; receptionist stated he was at lunch at 10:40am?!!, so I asked to speak with the manager or supervisor I ten spoke to him and stated I was calling to inform them I switche and wanted to cancel with them. He replied who was your rep, I stated to him then of course the manager says I am going to transfer you to customer service. I said ok. Now here is the funny part they are closed weekends. WHy did this idiot transfer me to cs knowing they were closed? So I get 2 calls from corporate and the guy named John I believe says well your case is going to our legal department because we paid Bristol West already and you still owe us the money. I kindly to him what happened and he was like did you know we were a brokerage? I said no and I wasn't told either. Sated everything that happened and he said I can't cancel over the phone and that I have to either go into the office or do it in writing. I asked him why didn't the manager tell me that then. You will not believe he said maybe he didn't know. Are you kidding me? You would not hire someone who doesn't know this. My paperwork doesn't state a right to cancel time period or anything. I did fax over my cancellation that same day in which I spoke to John in the corporate office. My question is I am not paying them anything; am I liable to pay the check that I wrote to them?

I believe, by law, you have 3 business days to cancel any contra

I believe, by law, you have 3 business days to cancel any contract. How many business days has it been? Can you get a fax number from these people and fax something to them so you'll have it in writing?

lrhall41

Submitted by OhioGal1 on Fri, 07/30/2010 - 09:57

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You can cancel auto insurance at any time. You may be responsib

You can cancel auto insurance at any time. You may be responsible for the 2 days in which they were insuring you. That should be all.

lrhall41

Submitted by OZZIE69 on Fri, 07/30/2010 - 10:11

( Posts: 555 | Credits: )

Thanks for that information. I will request this cancellation in

Thanks for that information. I will request this cancellation in writing for my reference. SO here is the deal. They are stating that since my check was dishonored by my bank they are going to seek bad check restitution since I signed that. I am going to request a copy of this as well. It has to be paid by 5pm today for the full amont of $461.07 and they said they will seek legal remedies outlined in California Civil; so basically up to $1500 and possible court fees and things of that nature.

So should I make a payment arrangement with them or what should I do? I had the policy for 2 days, but cancelled in writing once I received the number in 7 buisness days not counting the weekend.

Please assist.

lrhall41

Submitted by Aloha Kitty on Fri, 07/30/2010 - 14:37

( Posts: 10 | Credits: )

If you canceled after 7 business days, then you should owe them

If you canceled after 7 business days, then you should owe them for 9 days of coverage, by my estimate. I would find out what that amounts to and pay them that amount. If they continue to argue with you, you may want to seek legal advice - someone who knows contract law.

lrhall41

Submitted by OhioGal1 on Mon, 08/02/2010 - 08:23

( Posts: 5253 | Credits: )

I have a background in contract and insurance law. Everybody ne

I have a background in contract and insurance law. Everybody needs to take a breath and please do not comment if you don't have a clue what the rules and laws are. First, if you presented a bum check, it is a criminal offense...and that includes stopping payment. There is a way to cancel, but this is NOT the way. So you need to make your check good or you may well receive a visit from the Sheriff. Second, if you would like to cancel, it is necessary to do so in WRITING by State Insurance Regulator's rules. The reason is, somebody could call in for you and cancel...then you have a wreck and then you say it wasn't you. Right? It protects you as well as the insurance company. Third, you used a broker and you signed the application agreeing to take the insurance. Then YOU changed your mind. Lucky for the car dealer you did not find a better car price when you got home after you bought it. A deal is a deal, but not to you if you get a better deal after you agree to the first deal, right? So the broker accepted your check just like it was cash. Then you stiffed him and maybe he then had to pay this to the insurance company out of his own pocket. He only gets 7-10% of what you paid him as commission. The rest goes on to the insurance company. So he may be out the $400 and made nothing for serving you. Finally, in my State, they allow "short rate" cancellations and "fully earned" insurance policies. That means, if you want to cancel you either get a penalty or NOTHING back. You probably can receive a refund on an auto policy, but I suggest in the future you understand the terms of any contract you enter. The insurance guy did nothing wrong here. You made a deal and improperly voided it.

lrhall41

Submitted by dantheman on Mon, 08/02/2010 - 15:18

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