Insurance Cancellation

Timely and full payments of insurance premiums are required so that insurance coverage can continue.  Some insurance policies have grace periods specified within the time period the insured may make late payments without affecting the validity of the insurance coverage.  Continued non-payment of insurance premiums, however, will result to termination of insurance coverage.

Other cases when insurance coverage may be terminated include proven material misrepresentation of the insured party, breach of the insurance plan’s terms aside from those that pertain to premium payments, or there has been a considerable increase in cost of insurance (risks involved in insuring the policy holder).  The latter applies as long as it can be proven that the substantial increase in risks couldn’t have been foreseen by the insurance company in its initial assessment.

It is important to note at this point that insurance coverage cannot be cancelled by the insurance company for arbitrary reasons.  Only the individual policy owner can terminate the policy through non-payment of insurance premiums, misrepresentation, and/or fraud.

Car rental companies invariably require their renters to have rental car insurance protection.  To make sure that renters have adequate coverage, most car rental companies have a rental car insurance counter from which rental car insurance may be conveniently purchased.  Various rental car insurance plans have different benefits.  The following are the usual rental car insurance options offered by car rental companies:

The following are the usual benefits covered under a regular vehicle insurance policy in no-fault states:

a. Personal Injury Protection

Personal injury protection refers to financial coverage in case the policyholder, family members and/or passengers are injured in a vehicular accident.  This usually includes medical payments or coverage that refers to expenses within allowable limits incurred in hospital stay, surgical expenses, and medical/diagnostic procedures that were all deemed necessary after a vehicular accident.  This portion also pays for rehabilitation expenses that include counseling and physical therapy costs incurred in the process of full recuperation.

The liability insurance benefit under the vehicle insurance policy is broad.  This insurance type provides financial protection against lawsuits made to the policyholder in connection with accidents that involve the insured vehicle.  Specifically, the most basic liability coverage under a vehicle insurance plan covers the following:

Most states require everyone who has an automobile to be able to show financial responsibility or else the driver’s license may be revoked.  Financial responsibility is demonstrated by an adequate vehicle insurance policy.

Renter’s insurance is similar in so many ways with homeowner’s insurance.  The only major difference lies in the property damage benefit.  A renter or a tenant is merely renting the physical home or house space from the true owner of the physical structure or the building.  Therefore, the owner of the apartment complex, the home or the dorm is responsible for insuring the physical structure against damage.

Generally, renter’s insurance only covers the individual who owns the policy.  However, there are renter’s insurance policies that allow multiple policyholders and multiple tenants under one insurance cover.  There are also renter’s insurance plans that can be paid up front, or can be paid through insurance premiums paid out monthly, quarterly, semi-annually, or annually.  Most renter’s insurance policies are by necessity renewable.

Most renter’s insurance policies have a deductible.  As has already been mentioned in a previous section, the deductible is the maximum amount of money that the insurance policy holder has to pay himself before the insurance company takes over.  The lower the deductible amount is, the higher the renter’s insurance policy premiums are going to be and vice-versa.

The renter’s insurance generally covers only the tenant’s personal belongings and personal liability as well as the medical coverage of injured people.  There’s no property damage cover for the home structure.  The following section will go into the different benefits that a regular renter’s insurance policy entails:

Generally speaking, property damage refers to the damage wrought on the home property by the disasters covered under a typical home insurance plan.  The amount of coverage will actually depend on the amount of premiums, the property valuation, and the insurance policy procured.  Aside from the home itself, other attached properties also get limited coverage under this type of home insurance benefit.  However, there are two main types of property covered under the home insurance, namely the home structure and the home contents.

Home insurance, or as it’s more completely known as homeowner’s insurance, provides protection against financial damages that result from covered eventualities that affect the insurance policy holder’s house structure and contents.  Most of these insurance policies are package insurance in the sense that their coverage extends far beyond the physical damages to the policyholder's home.  However, it is commonly the case that a homeowner’s insurance will not cover for earthquakes and floods.  It also does not pay for damage to property caused by the policyholder's family and his or her own negligence of standard home maintenance procedures.

Every specific homeowner’s insurance policy may include and exclude different homeowner perils.  Some policies may purposely name every incident covered under the policy and the amount covered by each particular incident.  Some policies will expressly include all perils except the explicitly excluded catastrophes.

Most health insurance plans fall under any or a combination of these three classifications of health insurance coverage:

1. Basic hospital insurance refers to costs associated with the stay in a hospital.  This
benefit usually has provisions and limits with regards to the maximum amount that will be shelled out by the insurance company, the number of hospital confinement days that the insurance policy holder is covered, the type of hospital room that will be covered and paid, as well as other specific limits that pertain to hospital stays.  The basic hospital insurance plan usually specifies in-hospital expenses (doctor’s consultation fees and medical procedures deemed necessary while policy holder or dependent is in the hospital).

2. Surgical expense insurance refers to a benefit of some health insurance plans that specifically covers the policyholder in the event of surgical procedures.  Usually, such a benefit’s coverage includes before, during, and after surgery expenses.  Different insurance plans have varying definitions of surgical procedures and each has its own inclusions and exclusions.  Usually, the amount of money shouldered by the insurance company is fixed at an invariable dollar amount.

3. Major medical coverage refers to a benefit offered with some insurance plans that do not discriminate if expenses are incurred in-hospital or not.  Benefits and financial claim limits are not specified by medical procedure.  Usually, there is a set limit amount for the whole health insurance.  This set amount may be for one health incident or for the insured’s whole lifetime.

Health insurance is a basic requirement for affordable quality health care.  It provides the health insurance policyholder health care options and resources for himself or herself and for his or her family on the face of the rising costs of medical care.  Basically, health insurance is protection against fatal and non-fatal illnesses.