Saturday, October 26, 2013

Proper Notice Needed to Cancel Auto Insurance

According to the an assurance of discontinuance, filed in Suffolk Superior Court on Wednesday, AICCO Inc., a subsidiary of American International Group Inc. (AIG), was found to have issued cancellation requests to insurance companies with an effective date that was just three days after the date of the notice.   Massachusetts requires premium financing providers to give at least a 20-day notice to the insurance company that issues the policy

 Cancellation of a motor vehicle insurance policy governed by statute M.G.L.A. c. 175, § 113A(2) contains the twenty-day notice procedure to be followed when cancelling a policy.  The twenty-day statute works with along with other provisions to make sure customers have enough time to bring their accounts current before their policies lapse.  See Massachusetts Consumer Bill of Rights for Automobile Insurance as well as the Code of Massachusetts Regulations.

 “Massachusetts customers should receive proper notice of auto insurance cancellations so they can determine an appropriate solution for continued coverage,” Attorney General Martha Coakley said. “Our office will continue to ensure that these providers are complying with state insurances laws, not prematurely pulling the plug on these policies.”

Source:  Attorney General’s Office