Cancellation of Insurance Policy Lawyer

Experienced Attorneys Serving Clients Nationally For Cancellation of Insurance Policies

Has Your Insurance Company Rescinded Your Policy And Left You Stranded?

When you make a claim on any type of insurance policy, the insurance company considers three options:

  • Pay the claim
  • Deny the claim
  • Rescind the policy

Also called post-claims underwriting, insurance policy rescission is the retroactive cancellation of an insurance policy. Rather than rejecting you as a policyholder at the time of application, the insurance company waits until you make a claim.

How Policy Rescission Works

After you make a claim for insurance benefits, insurance company representatives review your initial application for coverage, searching for any hint of a “misrepresentation” that they could argue permitted them to cancel the policy.

If you make a claim on your commercial general liability insurance, they may say you overstated your firm’s income as a reason to rescind. If you make a claim on your health insurance, they may comb through your medical file. If they find any medical procedure or treatment that is not noted on your application, they can try to use it as a reason to rescind your policy.

At Pillsbury & Coleman, LLP, we represented a father whose family health insurance policy was rescinded because he had indicated on the application that no one in the family had a history of drug abuse. After a claim was made on the policy, the insurance company investigated and found that the man’s teenage son had a drug abuse problem. The father had no idea that his son had used drugs; the insurance company said he should have known and rescinded the policy for misrepresentation on the application.

Insurance Companies Use Policy Rescission To Boost Their Profits

Insurance rescission helps insurance companies enhance profitability by eliminating clients who need benefits while accepting premiums from those who do not. The practice leaves policyholders without insurance at a time when they are often unable to find another provider.

At Pillsbury & Coleman, LLP, our insurance attorneys represent clients who have had their insurance policies rescinded. Rescission is an issue in all types of insurance policies, including life insurance, health insurance, disability insurance, malpractice insurance, and general commercial liability insurance.

Find Out More How We Can Help You With Your Case

To learn if we can be of assistance to you, please contact our office in San Francisco by email or by calling (415) 433-8000.