Cancellation of automobile insurance policy

Was the registered letter sent to the insured?

Customer accident — A customer contacted our office after an accident and reported that his insurer claimed his automobile policy had been cancelled before the loss.

Request for notices — We asked the insured to provide any cancellation notices, especially a registered letter, which is legally required in New Brunswick for certain types of policy cancellations.

No registered letter received — The customer stated that he had never received such a letter.

Inquiry to insurer — We contacted the insurer and requested:

• A copy of the registered cancellation letter
• Canada Post tracking information proving it was sent

Insurer unable to provide proof — The insurer could not produce:

• The letter allegedly sent
• Any tracking or mailing evidence

Cancellation deemed invalid — Because the insurer could not demonstrate compliance with statutory cancellation requirements, it acknowledged that the cancellation was not legally effective.

Coverage reinstated — The insurer accepted responsibility for the claim and agreed to provide coverage.