Life insurance company cancelled policy when our check arrived after end of grace period (USPS tracking showed 17 day delay on Express Mailed payment). Life insurance company deposited our premium check payment 7 days past end of grace period, but are claiming policy is nonetheless cancelled.
Does Ins company's acceptance of premium check indicate they have accepted continuation of policy and that this is legally binding?
1 Answer from Attorneys
There are too many unknown variables to answer your question. First is whether you are paying forward or back. Many insurance companies billings are for coverage up to the date paid, not like rent where you pay on the first of the month for the rest of that month. If their billing is for the prior period, they are entitled to keep your check and cancel any future coverage. If it is paying for future coverage, then the question becomes more complicated as to coverage dates, but in any case they would be entitled to cancel. They just may or may not owe you a refund of the payment.
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