Is his auto insurance taking us for a ride?

Question

So my boyfriend made a rash decision and signed up with an auto insurance company he'd had before. When I reminded him how difficult they were when he had a claim, be decided to cancel it (2 hours later!). It's been two weeks of the run around from them. At first they were saying he'd get a full or maybe 90% refund on his down payment. Now they're saying they're going to charge 10% of the annual payment! That's the full $400 down payment. Can they do this!? Is it legal to charge $400 dollars for 2 hours of coverage without him ever signing anything or seeing the terms of the policy? If you have a referecnce to what the law says about this, or a place to look, it'd be greatly appreciated!

Answer 1

Did he replace coverage the same day that he cancelled with that company? All he has to do is provide that company with a request to cancel (a form they have ) and a copy of his current declarations page which shows effective date of coverage along with his name.