Incorrect cancellation

An insured was advised by a broker that automobile insurance coverage would cost approximately $100 per month. Relying on this quotation, he accepted the proposal and cancelled his existing insurance coverage.

Shortly thereafter, he was informed that the insurer would not cover him.  The client had to look for coverage through the Facility Association at a premium nearly four times higher than the amount originally quoted by the broker.

The insured subsequently contacted our office. We reached out to the insurer, which advised us that it had no record of the client ever having been insured with the company. As a result, no formal cancellation notice had been sent to the client, since the insurer's records did not reflect an active policy in his name.

We then provided the insurer with a copy of the pink card that had been issued to the client, confirming one year of insurance coverage. Following its review of this information, the insurer acknowledged the coverage and agreed to honor the insurance arrangement initially offered to the client through the broker, thereby maintaining the coverage on the terms originally quoted.