Legal Question in Business Law in California

Unfair Business Practices and Maneuvers

Can an insurance company non-admitted in California, but doing business in California and located in the United States, cancel a policyholder without a reason after the policy has been in effect more than 120 days and the insurance company already has the premium? Is it also legal for this insurance company to then offer to re-write the same policy through another retail broker at the same price as offered through the original retail broker? The insurance company is telling the client(s) of the original retail broker, yes we will re-write your policy as long as it is not through that retail broker. There is a clear attempt to take the clients away from the original retail broker. In no other program or with any other policy available in the country, can the clients get such a low price. The original retail broker also has only 30 days to re-market the clients to a new insurance company with NO chance of matching the original rates and terms. This does not seem fair to the consumer nor to the retail broker as this move may lead to the retail broker losing a great majority if not all of the clientele in the program (at least 90 stores) not to mention the affect on the client-broker business relationship.


Asked on 10/24/03, 8:08 pm

1 Answer from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Unfair Business Practices and Maneuvers

You're absolutely right this is unfair, but life is unfair, probably legal, disruptive, emotionally wrenching, and all the other hyperboles. But the real question is what do you want to do about. What is your intent and how committed to are you. Who are you in relation to all of this. If your sincere contact me at 925 -- 945 -- 6000. I am in the San Francisco Bay Area and have been practicing business law for 30 years.

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Answered on 10/25/03, 2:08 pm


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