Mail to LOOK OUT FOR….
Any letter which reads, “notice of cancellation” or “non-renewal” from an Insurance Company.
This is a Serious Letter!
It is IMPORTANT & needs YOUR attention!
This letter is as important as your car, home, and all your belongings because by ignoring this- you could be risking the protection you have on all of that!
These pieces of mail are legal notices from the insurer and they are the last communication they will send before the policy ultimately cancels.
What to do:
If the policy is reinstated be sure you receive a “notice of reinstatement.’
If you satisfy or remedy the reason that has led to the cancellation and do NOT receive a notice of reinstatement you must assume that there is no coverage. You should contact the company or your broker immediately in this case.
What not to do:
Do NOT expect further reminders from the Company, Brokerage, or Agency.
These offices do NOT send you reminders.
You must NOT rely on us to send late payment reminders by phone, email, or mail.
Make Sure that the date of the notice of reinstatement matches the date of the cancellation notice or be before then, so that there is no lapse in coverage.
There are different types of notices and reasons for cancellation or non-renewal;
Notice of Cancellation for Non Payment of Premium:
When an insurance company does not receive a scheduled payment on time, they will send a legal notice of cancellation. The notice will specify the exact time and date of the cancellation.
If the company receives your payment BEFORE the date/time then they are required to reinstate the policy. If the payment is received AFTER the time then the company has the option whether to accept payment and reinstate the policy or not. The time of cancellation is usually 12:01 AM. If the Cancellation time is 12:01 AM on January 3 then the company must receive the payment by January 2 in order to guarantee acceptance.
Most insurance companies today have a variety of means that allow you to make payments instantaneously; online, by phone, or by app. Many also offer automatic EFT payments.
Remember that payment to the Agency is NOT the same as payment to the Company.
Insurance companies are under no obligation to accept a late payment after Cancellation notice has been issued. As your agent we’re happy to accept the payment provided there is sufficient time during office hours to make payment to the company.
Notices of Cancellation for Underwriting Reasons:
If you receive Notice of Cancellation or Non-Renewal for underwriting reasons the REASON for the cancellation and the termination date MUST be specified in the notice.
There are many reasons why an insurance company might cancel or non-renew a policy. Sometimes you can rectify the situation before the effective date and the policy will be reinstated or issued. For example, an insurer may inspect a property and require that repairs be made. If the repairs are not made the underwriter has the option to issue notice.
To learn more about Cancellation Notices and if you might be in danger of getting a letter like this in the mail, call us at 201-436-7600 at Julius A. Rose Insurance Agency and ask how we might be able to become your agent & help you with this. Check back with us and keep track of our blog posts!