Can an insurance company reduce your policy without your signature?

Question

We received a check in the mail in November from our insurance company for $99. Nothing else was with it. We called and they said that we had overpaid our premium for the year and that was our reimbursement. Now we have lost our home in a tornado and our insurance company is saying that when we cashed that check we agreed to reduce our policy. They say that they sent paperwork with it....but all we received what the check.....NO paperwork. I was still under the assumption that we had the original coverage. When I asked them to provide the policy that I signed....all they could provide was the original for the larger amount, but are still refusing to pay more than the reduced amount. Is this legal?

Answer 1

Unless your company has deleted "wind coverage" from ALL of the policies that it writes in MS, you SHOULD have a case.  There were a lot of court cases after Katrina went thru (an most folks only think it hit New Orleans) that might have caused some action - but, I think that I would contact your Department of Insurance - here's a link to their website: http://www.mid.state.ms.us/

And here's a link to their COMPLAINT form:

http://www.mid.state.ms.us/consumer/midc...

Good luck and I sure hope this helps!

Answer 2

Im an agent and must say I have never heard of that in my life! Contact the home office, something is not right!

Answer 3

hire an attorney and complain to your state insurance commissioner.

looks illegal to me, but we can't search your state's laws for you because you didn't tell us where this is !!

Answer 4

You need to contact the Attorney General for your state. They may send your complaint to the state agency that over sees Insurance companies. No, it is not legal, IF and only IF, there was no paper work involved. If there is not a policy with your name on it showing the new lower coverage, then they have broken the law. They get away with such because they have the money, and time, to defend themselves that you do not have. That is why you need to contact the state Attorney General. The refund needs to be accounted for, and company policy statement provided showing that the refund was for a reduced policy coverage, that you were informed in writing, and signed a document accepting that new coverage. If all of this does not exist, and there is nothing stating that they can change policy coverage without informing you of the change, then they have indeed broken the law. You just need someone with more clout to clobber them with than what you have at your personal disposal. That is where the state Attorney General come in. Believe me, nobody likes to have the Attorney General asking "why".