Legal Question in Insurance Law in Florida

Promise to Pay by Insurance Company

My insurance company called and told me that my auto claim was going to be paid, and reviewed all the items that I would be reimbursed for, including rental cars, medical, loss wages, etc. They even sent out the necessary paperwork for me to return, which I received in the mail. They also took my sworn statement, which they recorded. They then called me back later that day and said they weren't going to pay, because my policy had been cancelled before the date of the accident. It seems they took my late payment but cancelled my insurance anyway. Nonetheless, my question is this: since the insurance company made the promise to me to pay, does that legally make it a verbal contract, and do they have to now pay the claim? I've seen on court shows that when someone concedes and promises to pay for something, they are legally bound to that promise. I was wondering if that is the same for insurance companies.


Asked on 2/04/07, 10:27 pm

1 Answer from Attorneys
Jacob Lieberman Lieberman Law Company

Re: Promise to Pay by Insurance Company

Depends on a lot of factors.

Can you show detrimental reliance, that because of what they told you, you took additional measures you wish compensation for?

Does this involve an at fault accident by another party? It would be interesting to see how your insurance was canceled because you would still be held responsible for the coverage according to the 'at-fault' party, if applicable. Were you sent a cancelation in the mail? In the contract, what does it state about how they will cancel your contract. Feel free to email me if you have any follow up questions.

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Answered on 2/05/07, 12:44 am


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