Pekin Insurance Company mailed a notice of cancellation to Anchor Enterprises on January 7, stating that cancellation would be effective at 12:01 a.m. on January 17. Tracy Wallace sued Anchor for injuries she suffered in June. Anchor asked Pekin to defend it in the Wallace lawsuit.
Anchor argued that their policy was still in effect because the policy cancellation condition required 10 days notice of cancellation and that Pekin provided only 9 2/3 days notice.
Cancellation provisions vary by policy and by state. Cancellation provisions are in IL 00 17–Common Policy Conditions or may be in a specific coverage form. In many cases, state-specific amendatory endorsements replace these cancellation or non-renewal conditions.
The insurance company and the policyholder are not equal, which means the policyholder starts the claim process at a disadvantage. You can help them by informing them that insurance companies must act ethically at all times.
In this court case, a claim was presented in June even though the policy was canceled in January. Did the policyholder truly believe it had coverage? Communication between the client and the agent might have clarified the issue or might have resulted in coverage being reinstated or replaced.
Insurance Words and Their Meanings has been updated. It has a number of changes, including a revised supplemental glossary on construction terms. In addition to the many new construction definitions, many “green” and “sustainability” terms were also added. In addition, there are significant updates to our automotive and gem and jewelry supplements.
The following is just a small sample of the new words and terms now included in this valuable reference:
AFNI
cyber forensics
extra contractual obligations (ECO)
pandemic coverage
pep plans
subrogation manager
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