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What can I do to cancel my insurance after the deadline?

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It has happened to you to tell the insurance company that you do not want to renew your car or house policy

It has happened to you to tell the insurance company that you do not want to renew your car or house policy. Well, here you have all the information you need if you want to cancel the insurance after the deadline.

Have you ever crossed a suspension bridge? If you have done it, you will know that doing it without protection and help is very risky, as well as canceling the insurance after the deadline.

And if you are nowhere reading this article, I’m afraid the objective is obvious, you want to cancel the insurance after the deadline. And you want to do it now.

The blog post that receives the most visits is 3 Tricks to cancel the insurance and not be claimed … Double the next in the ranking of the most read. And the truth is that it does not surprise me, especially since we do not take the insurance contract seriously until we suffer a mishap. There is also a lot of misinformation and certain myths, some related to the loss of insurance after the deadline.

  • They make you an offer over the phone, you accept and believe that the new company will take care of canceling the old insurance
  • You have seen a car insurance bargain on the Internet, you have hired it and now you find that the two receipts have been charged to you. 
  • When you receive the charge from the bank for the new policy, you return the receipt of the old insurance. 

We have quickly associated that the insurance contract works with portability, as it happens when changing the provider of the telephone, electricity, or gas. We make the mistake of thinking that it will be the new company that will cancel the policy.

We buy the super-insurance-bargain online and forget to cancel the one we have in force or we act as the mediator on duty tells us and …

Surprise!

We received the claim from the insurer inviting us to pay the insurance under threat of claiming it in court.

With this article what I intend is to give you outlets for when the “nothing happens” or “the company will not claim you”, is not fulfilled.

The duration of the insurance contract

Before I spoke of the usual providers in a home. The telephone, electricity, or gas contract does not have a fixed duration, the financial or insurance contracts do.

The duration of the contract will be determined in the policy, which may not set a term of more than ten years. However, it may be established that it be extended one or more times for a period not exceeding one year each time.

According to this, a minimum duration of the insurance is not legally established, being able to subscribe with a duration of one day or up to ten years.

When we contract temporary insurance (with a specific duration), for example, for fifteen days, a month, or six months, when the expiration date arrives, the contract is terminated and the insurer is released from its obligations.

On the contrary, when the insurance is extendable for one year (the most frequent duration), if the expiration date has arrived, neither party has notified the other of the termination of the contract, it is automatically extended for a new annuity.

In the case of life insurance, the duration of the contract can exceed ten years. It generally lasts until the insured reaches 65 or 70 years of age. Some insurers offer life policies with the possibility of increasing this time.

What do I have to do when I don’t want to extend the insurance?

Both the policyholder and the insurer can oppose the extension of the contract. In the case of the policyholder, they must notify the insurer in writing, at least one month in advance of its expiration. When it is the insurer who promotes the cancellation, the term is extended to two months. Due to the nature of the law, any variation in these terms must be included in the contract and can only improve the interests of the insured.

And this is for all insurance contracts, whether you have signed them over the phone, the Internet, through an insurance agent or broker, at the bank, or at the insurer’s office. It is also not useful to do it in any way, but if you want to know how to do it effectively, in this other post I will tell you. How to cancel insurance: Guide to do it efficiently.

If you do not communicate your wish to cancel the insurance correctly and within the legal term, the contract is automatically extended for a new year. And this will happen successively year after year, as long as one of the parties does not oppose the extension.

Is the insurer obliged to inform me of the renewal of the contract?

The answer to this question is found in the Insurance Contract Law, which establishes:

The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.

As you can see, it should only inform you in advance when the conditions of the insurance contract change. And generally, these changes will almost always be tied to the insurance premium.

Price is one of the fundamental conditions of the insurance contract. Therefore, in the case of variation, the insurer is obliged to notify you two months in advance. It should also be done if any other change occurs, even if it may seem irrelevant. For example, if it increases, eliminates, or modifies coverage and benefits or increases franchises or copayments.

But be careful that they are not always obliged to communicate changes in advance, especially when this modification is already regulated in the contract. These are some of the most common:

  • The premium goes up or down due to the application of surcharges or bonuses for claims.
  • That the price of the insurance is updated according to the variations that the IPC may suffer.
  • The commercial discounts applied by the insurer at the time of signing the insurance disappear.
  • The policy includes a clause for the automatic revaluation of the insured capital, in which case the price of the insurance also increases.
  • Modification of taxes and fees levied on insurance premiums.

Therefore, in the renewal of the contract, the insurer has to meet certain requirements. Let’s see what consequences not complying with them can have and how they affect you.

What can I do to cancel my insurance after the deadline?

At the beginning of the article, I told you about three situations that happen quite frequently among blog readers.

When you receive the call or letter from the insurer demanding payment of the receipt you have returned, you realize you have a problem. You may think that it is too late to find a solution, and you wait to see what happens.

As in chess, sometimes the best defense is a good offense. You are aware that you have not done something or have done it wrong, but has the insurance company acted correctly before the renewal?

1. The insurance has not yet expired

In this case, the first thing you should check is how much time you have left until the renewal date. If you have more than a month left, prepare your cancellation letter and send it to the insurer before the legal deadline.

If there is less than a month left, check if the insurance will cost you more than the previous year or if there are any changes in the conditions.

The insurer must confirm whether or not to proceed with the cancellation. But while it does, it doesn’t hurt, if you are determined to change companies, order your bank to return the receipt or cancel the credit card before it expires.

2. The policy has already expired.

The expiration date has arrived and the insurance has been renewed for another year. The way to act in this case does not differ too much from what was done before when the contract had not yet expired. It is only about changing the times of each action.

If your decision is to change your insurance company, the first thing you will have to do is return the receipt that you have received from the bank.

The next step is to check if the insurer notified you within the legal term of any change in the policy. You also know the renewal price so you can compare it with the previous year. With this, you already have all the elements to communicate to the insurer your willingness to cancel the contract. Do not worry about doing it after the expiration, the important thing is to let him know the reasons why you give up on extending the insurance.

Did you direct the insurance payment on the credit card? If you have not been smart or acted as I pointed out before, you will have problems returning the charge because to do so, you will need the authorization of the insurer. And you do not need to have a master’s degree to know that it will not be authorized.

How do insurers act in these cases?

I told you at the beginning, canceling the insurance after the deadline is risky because current legislation allows insurers to carry out the collection of the insurance when there has been a default on the part of the policyholder in the payment.

After one month from the expiration date with the pending receipt, the law provides for the suspension of the policy coverage. It also establishes a period of six months for the company to claim the payment, if it does not do so within this time, the contract is automatically terminated.

There is no uniform criterion of insurers when claiming. Each sets its own business rules, but it seems that most have adopted a common protocol.

Although the cost of claiming the premium in court has decreased, few venture with claims of less than 600 dollars. When it comes to higher amounts, they also think about it, especially if they have breached the rule before the renewal of the insurance.

Conclusion

On paper, the options you have to cancel your insurance after the deadline are few, and not always risk-free. In practice, knowing a little about the insurance legislation, it is much easier, right?

This is all due to the fact that insurers frequently act arbitrarily, in breach of the law. This gives the contract holder arguments to justify that he can cancel the insurance after the deadline.

In summary, you only have to carry out a couple of actions to defend yourself in the event that the insurer claims you for the insurance payment:

  1. Check if the conditions of the contract have changed and if the company informed you two months before the expiration of the modification.
  2. Communicate in writing to the insurer your wish to cancel the insurance and the reasons why you do so after the deadline
  3. Return the receipt if it has been passed to you at collection or instruct your bank to return it. If you pay by card, cancel it before the insurance charge arrives.

Then, you can only wait for the company to terminate the contract or for it to expire six months after it expires.

Now your turn has come, help others by sharing this article on your social networks and answering this question in the comments.

Do you change insurers frequently, do you notify them of the cancellation of the insurance on time?

Car Insurance For New Drivers

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Being a young and new driver has its drawbacks if you want to take out car insurance

Being a young and new driver has its drawbacks if you want to take out car insurance. Find out in this article how insurance companies treat young people …

You have passed the driving test!

My congratulations, for it!

The next thing will be to take the first car that they leave you to start driving on those roads. But first, you must pay attention to two things: put the L that identifies that the vehicle is driven by a novice and confirm that the car has signed and in force the mandatory circulation insurance.

It is about civil liability insurance that covers personal and material damage that you may cause to a third party. The coverage it provides is regulated by law and by the conditions agreed in the contract. And among those conditions are those that affect the driver of the vehicle.

Those of us who are dedicated to this, know that young people and novices are more likely to suffer an accident. It is statistically proven that those over 65 have 4 times fewer accidents than young people who have not yet reached the age of 25.

And insurers are based on data like this to establish the price of insurance. But they also look at other things that you can discover in five facts that insurers look at before hiring car insurance.

I guess you have discovered that this post is about car insurance for a new driver. In it, you will discover what conditions insurers put in order to underwrite the insurance.

What circumstances do insurers consider in car insurance for a new driver?

Insurers establish the price of insurance based on historical loss data, segmenting them according to different risk groups. In the case of car insurance, the two fundamental variables that are taken into account are the circumstances of the driver and the vehicle to be insured.

To determine the risk group to which you belong as a driver, the insurer will ask you for two fundamental information, the date of birth and the date of obtaining the driving license.

What do insurers understand as a minor driver?

When we talk about car insurance, young people are the risk group most at risk of having an accident.

But at what age are you still considered young?

Well, until a few years ago each insurer had its own criteria. Today, most consider that they are young, those whose age is between 18 and 25 years. All the people that make up this group are considered young and will be penalized in the price of the insurance.

Despite this, the market is large and when it comes to hiring car insurance for a new driver, the range of products and prices is very varied.

The experience is not in age.

At the beginning of the post, I told you that young people have 4 times more accidents than people over 65 years old. There are two qualities, among others, that influence this to be so: prudence and experience.

The first is linked to age. The most impulsive young people are more exposed to recklessness than, together with the lack of experience behind the wheel, increases the probability of having a traffic accident.

It is assumed from a driver that the longer it has been since he obtained the driver’s license, the more experience he has acquired at the wheel. And although this is not always the case in practice, for insurers it is essential.

So if you are a young driver, less than 25 years old and new, less than two years old on the license, get ready, because the welcome reception, with which the insurers will receive you, will not be cheap.

The choice of car, another determining factor.

Although the age and age of the license are very important when hiring your insurance, the type of car can be decisive.

In all these years, dedicated to insurance, I have come across real nonsense, some with disastrous results. Young kids, with a fresh license, driving cars with more than 180 HP of power with just over 1,200 kg of weight.

If you want to pay a reasonable price for your car insurance, you have to seriously think about which model you are going to buy. The truth is that having a car with more power, more exclusive, faster, will make the price of insurance higher. Most insurers penalize for the power of the car, and more if you are new and young.

The union of these three circumstances can be a serious blow to your pocket.

Depending on your circumstances, the surcharges can range from 20% in the best of cases, to exceed 130% of the price that a driver over 30 years of age would pay for the same insurance.

Two tricks with consequences: not appearing on the policy or doing it as an occasional driver.

There are formulas to reduce the price that young novice drivers have to pay, but I do not recommend that you use them.

One of the most frequently used tricks is, for example, that of the kid who takes out his driver’s license and buys a car, but it is nowhere to be found in the insurance. He does not do it as a taker, nor as a driver. In this case, it is the father or mother who becomes the regular driver of the car. This means that the price of insurance does not become more expensive, but at the same time you are going to take some risks that we will see later.

The other trick used is to include the novice driver as an occasional driver, despite being the regular driver of the car. Most insurers penalize this situation, applying certain surcharges when you modify the car insurance for new drivers.

It is clear that the cost will be lower than if it were the usual driver, but you are not going to get rid of some of the consequences of falsifying the driver’s circumstances.

What are the consequences of not being listed in the insurance as a regular driver?

In insurance, most of the time, the consequences are noticed when the insured risk occurs. That is when the loss occurs.

The most convenient thing is, if you are the usual driver of the car, to appear as such, even if you are young and fledgling. It is about avoiding compromised situations that can put personal or family assets at risk.

Without history, there are no bonuses.

Having a good insurance record pays off. But to have it, the first thing is to appear on the insurance policy.

When you let the insurance holder be a veteran driver, generally the father or the mother, two things can happen: if you are a good driver you will make the holder the one who benefits from the bonuses and the best prices on insurance. With your history, you will be able to change insurers and obtain better conditions in the contract. On the contrary, in the event of an accident, your driving record will be penalized, having to pay more for insurance.

Whatever the case, with your attitude there is always someone who gets hurt.

The regular driver is the main beneficiary of the coverage contracted in the policy, provided that he meets the stipulated conditions and that the information provided to the company is true.

Lack of coverage in the event of an accident.

One of the conditions imposed to enter into an insurance contract is the accuracy of the data on the insured risk. In-car insurance, knowing who will be the driver is essential to determine the conditions that will govern the contract.

The consequences of having a traffic accident can range from causing a small dent to causing very serious injuries to people.

When the driver does not match the one declared in the policy and it is a young or new driver, the insurer may refuse you the consequences of the accident. In the worst case, if it is interpreted that there has been fraud or bad faith when hiding the information about the driver, it could invalidate the policy.

Conclusion

If you are young and new, but you are going to drive daily or very frequently, there is no excuse, you must appear as the insurance holder and regular driver of the car. Only in the case that you are going to make sporadic use of the car, is when you should appear as an occasional driver. And although the insurers will not take into account the time of experience as an occasional driver, you will be able to enjoy the insurance coverage.

The downside of new driver car insurance is the price you have to pay for it. But if you do it right from the beginning and you are a good driver, as you accumulate years of seniority with the license or you become years of age, the price will be reduced. You will also avoid falling into situations like these:

  • Lack of driving history because you have not been listed in any insurance.
  • Benefit or penalize a third party because he is the one who appears as the insurance holder.
  • Lack of certain coverage or even insurance in the event of an accident, if the insurer considers that there was bad faith when signing the contract.

Ah! I forget to tell you that, if no insurer wants you, there is the Insurance Compensation Consortium where you can take out car insurance for new drivers.

We want to hear from you. What did you do when you took out your car insurance as a new driver, was it worth it?

How long does insurance company have to pay a claim?

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One of the most frequent complaints is that insurers do not pay or pay late

One of the most frequent complaints is that insurers do not pay or pay late. Do you know how long the insurance has to pay a claim? The key is to know what they are …

Nine, eight, seven, six … The countdown has begun. In a few days, the deadline to collect the compensation is met. Or not? Because you know how long the insurance has to pay a claim.

One of the most frequent complaints is that insurers do not pay or pay late.

And the question is if they have to pay when do they have to? The answer should be obvious: as soon as possible, immediately.

But the thing is not so simple and one of the keys is to know what the obligations of each of the parties are. So in this article, I am going to explain what you have to do so that the insurer pays you since it is exposed if it does not do it within the established deadlines.

Without further ado, let’s go for it!

What is the insurance business?

An insurer is a financial entity, with the capacity and duly authorized to carry out the insurance activity. This includes assuming the obligation to pay an amount of money, or provide a service when the event occurs whose risk is covered, and all this in exchange for receiving the amount of the premium established as the insurance price.

The insurance contract (the policy) is the financial instrument in which the insurer sets out its commitment to pay in the event of the loss. This can give you an idea that it is an adhesion contract, where it is the insurer who establishes its conditions. Conditions regulated in Law 50/80 of the Insurance Contract, whose precepts are imperative.

You suffer a car accident and your insurer will provide you with the necessary assistance, assess the damage to the vehicle, and will compensate you or repair it, if applicable. So far everything seems very simple, the problem arises when we ask ourselves how long does it take to resolve the claim?

How long does insurance have to pay a claim?

The truth is that current legislation does not leave the answer to this question to chance. If things go well, you should have no problem receiving insurance benefits or collecting compensation. But if things go wrong, knowing what the deadlines are is a guarantee that the rules are met and that your rights as an insured are respected.

However, it will depend on the type of insurance that is affected by the loss so that the terms vary. Thus, for example, it is not the same that you are the injured party in a traffic accident as the beneficiary in a life policy. You will see why later.

What are the obligations of the insured towards the insurer?

For the insurer to have to fulfill its part of the contract, two relevant facts must be given:

#1. The policyholder or the insured must be up to date with the payment of the insurance premiums.

If the insurance is recently contracted and you have not paid the premium before the claim, the insurer is released from its payment obligation.

When it comes to the renewal premium, the insurance is suspended one month after its expiration and will only come into force again 24 hours on the day you pay the premium.

#2. The policyholder, the insured or the beneficiary must inform the insurer of the occurrence of the loss.

Notification of the claim must be done within a maximum period of seven from when you became aware of its occurrence unless a longer period has been set in the policy. If you are late and the deadline is passed, the insurer could claim the damages that this delay may have caused.

In addition to informing the insurer, the policyholder, or the insured, you must provide all the information on the causes and consequences of the loss. But it is that the law also transfers to the insured the obligation to prove the existence of the damages, the salvaged objects and the pre-existing ones at the time of the accident, as well as the valued estimate of the damages and losses.

Failure to comply with the duty of information may mean losing the right to compensation or the provision of the service.

How long do I have to claim insurance for a claim?

The usual thing is that we take time to declare the claim beyond the 7 days established by the norm, therefore you should know.

After these deadlines, the actions derived from the fact are considered to have been prescribed.

When the claim is related to a matter of civil liability and the claim is made against the insurer of the deceased, the period is one year to claim. After this time, the claim would be prescribed.

The insurance obligation for the payment of the benefit.

Once the insurer has knowledge of the loss, either by the declaration of the policyholder, the insured, beneficiary, or by any other means, the period established to resolve it begins.

However, each claim may have a different response time depending on the type of insurance contract affected by the claim.

Let’s see what the law establishes in each case.

In traffic accidents.

When we talk about the consequences of a traffic accident, we have to distinguish between damage caused to a third party, personal or material, and those caused to our vehicle.

As established in article 7 of RDL 8/2004, which approves the revised text of the Law on civil liability and insurance in the circulation of motor vehicles, the term begins at the moment that the injured party or his heirs claim the insurance company compensation for damages caused by your insured.

From this previous claim, the insurer has a period of three months to present a motivating offer of compensation if it understands that the responsibility has been proven and the damage is quantified. If the claim is rejected, you must give a reasoned response stating the reasons that prevent you from making an offer of compensation.

In this article, you will find all the information you need about the previous claim.

In all other insurance.

Before I told you that you had to distinguish the consequences in the traffic accident and I spoke to you about the damage caused to the vehicle. In this sense, as in any benefit derived from home, business, industry, accident, or life insurance, the insurer has a period of 40 days, from the moment it became aware of the accident, to pay the minimum amount of what it may owe according to known circumstances.

It goes without saying that if we do not inform the insurance company of the incident, we will hardly be able to claim payment within the previous period.

But there is more, in damage insurance, once the claim is declared, within five days the policyholder or the insured must notify the insurer in writing of the list of existing objects, those saved, and the estimate of the damage. But what is more, it is up to the insured to prove the pre-existence of the objects.

Based on this, you should adopt an active attitude, providing all the information to the insurer. About this, I recommend you read the content of this post. Do I have to wait for the insurance expert to come before I repair the damage from a claim?

When must the insurer pay default interest?

So far we have seen the terms that the insurer has to compensate and how it should do it. Failure to comply with this obligation is penalized as regulated in article 20 of the LCS.

The compensation incurred by the insurer for the delay will consist of the payment of an annual interest equal to the legal interest of the money in force at any given time, increased by 50%. After two years from the date of the claim, the interest may not be less than 20% per year.

This interest is considered to be produced by days and for its computation, the date of the claim will be taken as the start date and the time when the corresponding compensation is paid as the end. However, other dates may be given as determined by the judicial body that automatically files the default with the insurer.

The default of the insurer takes effect, in general, concerning the policyholder and the insured and, with a particular character, with respect to the injured party in the civil liability insurance and the beneficiary in the life insurance.

The insurer has canceled my car insurance, what can I do?

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The insurer is obliged to notify the cancellation of the insurance in advance.

The insurer is obliged to notify the cancellation of the insurance in advance. Depending on the reason, the time to do so may be shorter, knowing these details and using them to your advantage is what you will find …

In this post, I am going to explain what you can do if the insurer has canceled your car insurance and what reasons it has had to do so. These same arguments, by analogy, are valid for other types of insurance.

A few days ago a friend told me that he had received two traffic fines, both imposed using one of the new DGT radars. One did not surprise him at all, he had gone a few kilometers over the speed limit. The other yes, they sanctioned him for lacking mandatory circulation insurance. The insurance company had canceled it at maturity and they had not told him.

Insurers look for a specific client profile and periodically check their insurance portfolio, debugging the contracted risks. So discovering that your car or house insurance has been canceled is a situation that occurs more and more frequently.

So that you have no doubts, in this post we are going to answer three specific arguments:

  • The insurer can cancel the insurance contract whenever and however it wants.
  • What are the reasons why you cancel the insurance?
  • What can the consumer do in this situation?

Without further ado, the good starts here.

The insurer has canceled my car insurance without notifying me beforehand. Is it legal?

In the insurance contract, like other contracts, a series of conditions are established that are binding on the parties who sign it. In this case, the insurer and the insured are obliged to inform the other party of those circumstances that occur after its formalization and that may modify the terms thereof. Also, those related to the duration of the insurance.

But in addition, this information must meet a formal requirement, you cannot do it in any way, you must communicate it in writing. It will expressly contain the decision of the insurer to oppose the extension of the contract, clearly indicating the date on which the termination or cancellation occurs, having to reliably certify receipt by the insured. If necessary, the insurance company will be the one obliged to prove that it communicated the cancellation in a timely manner.

Can the insurer terminate the insurance contract at any time?

There is another requirement that the insurer must meet when it decides that it is not interesting as a customer or does not want to continue insuring that specific risk. This requirement is temporary, the communication must be made within the legally established deadlines. Failure to comply with these deadlines renders the communication of opposition to the extension of the insurance ineffective.

But the insurer, not only, must comply with the formal requirement in the communication and the time to do it, but the Insurance Contract Law establishes the conditions under which you can cancel the insurance of the car, home, or your pet. The reasons are diverse, so we are going to see what are the most frequent causes.

What are the most frequent causes of cancellation of the policy by the company?

In the same way that the insured when he wants to cancel the contract, he does not have to explain to the company why he does it, it does not have to do it either. This is provided for in article 22 of the Insurance Contract Law.

When this article is invoked, you should know that the insurer must notify the cancellation insurance at least two months before the renewal date.

A period of two months is also established for the insurer to notify the policyholder of any modification in the contract.

But there are other deadlines that you are interested in knowing.

Non-payment of the premium, the most frequent cause for car insurance to be canceled.

Most of the time, due to ignorance, carelessness, or misinformation, we think that returning the receipt, when they pass it on to us, is enough to cancel the insurance. And it is not like that, because from that moment on, you leave the decision to the company.

The law says that in case of non-payment of any of the successive premiums, the insurance coverage is suspended one month after the expiration date. And the insurer has six months to claim the insurance payment, if it does not, the contract is automatically terminated.

Some insurers report the suspension of insurance while claiming payment. Others after 30 days cancel the insurance without further ado, leaving you without options to start the contract again, paying the corresponding premium.

The insured risk does not correspond to reality.

Sometimes it happens that, from when we take out the insurance until the event whose risk we insure occurs, a certain time elapses and the characteristics have changed. In these cases, when the insurer knows it, it can terminate the contract if the risk no longer interests it. To do this, you must notify the policyholder of your decision within a month of becoming aware of the increased risk.

However, this is not always the case, in many cases, it is the policyholder who informs the insurer of a change in the circumstances of the insured risk. In this case, the company has two months to propose new insurance conditions. The policyholder has fifteen days to accept or reject it. If it is rejected or there is no response, the insurer may terminate the contract after warning the policyholder, giving him fifteen days to respond, after which and within the following eight days it will communicate the termination of the contract.

When any of these reasons concur with the termination of the contract by the insurer, the policyholder is obliged to return the part of the premium not consumed.

Trying to deceive the company does not go unnoticed.

Insurance is an adhesion contract and before signing it you will have to answer the questions that the insurer submits to you. As a policyholder, you have the duty to inform about the circumstances that will influence the assessment of the risk you intend to insure. These data form the basis for determining the price you will have to pay for the insurance.

Well, the insurer may terminate the contract, through a statement addressed to the policyholder, within one month of becoming aware of the inaccuracy or reservations in the information. In this case, contrary to what happens in the previous point, the unconsumed premium will remain in favor of the insurer, unless it has acted with intent or gross negligence.

But there is also a consequence that can be detrimental, and that is the loss of compensation. If the loss occurs and the insurer has not notified the policyholder of the termination of the contract, the compensation will be reduced in the proportion between the agreed premium and the one that would have corresponded if the true entity of the risk had been known.

Not only does deception occur when subscribing to the insurance, so that the insurer assumes the risk or comes out cheaper, but also when falsifying the occurrence of a claim or its consequences. In this case, in addition to terminating your contract, the insurer may find you with a criminal complaint, with serious consequences for you.

The frequency of claims, a reason to cancel the contract.

As I have already told you on more than one occasion, insurance companies are not NGOs, they are companies whose objectives include making money.

The companies must meet a series of solvency requirements that allow them to meet the obligations of the underwritten risks. To avoid deviations, they closely mark the global and individual results of each insurance. Therefore, it is not surprising that they periodically clean up and terminate those deficit insurance contracts. It depends on each insurer, but having a couple of claims during the annuity can be a reason for cancellation. Some only assess the cost of claims and others remix both data.

In any case, if the insurer decides to cancel the contract, it must notify it at least two months before expiration, except in the case of any of the circumstances analyzed in the previous points.

These are some of the facts that motivate you to find that the insurer has canceled the contract, but there are others, such as the sale of the car or the home.

Conclusion

We have seen how you can find that the insurer has canceled the insurance, by unilateral decision or forced by your action as the policyholder.

If the cancellation is unilateral, for it to be valid and effective, it must be communicated in writing, reliably, and expressly indicating the reasons for the decision. Depending on these reasons, the minimum period to communicate the cancellation will be:

⇒ Two months: When the decision is not to extend the contract beyond the expiration date.

⇒ One month: If the termination of the contract is prior to expiration. In this case, the normal thing is that the insurer is obliged to return the unconsumed premium.

As you can see, the company can also cancel the contract whenever it wants, but like you, subject to certain rules. From now on, you know how you can act to your benefit if certain conditions are met.

Have you ever run out of insurance and didn’t know it?

Now it’s up to you, leave us your answer in the comments, we are happy to read your comment.

7 Data that the insurer should include in its insurance proposal

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The insurance consumer still does not spend the analysis time that he needs to choose a good insurance.

The insurance consumer still does not spend the analysis time that he needs to choose good insurance. We give more importance to the price than to the benefits, so most of the time, we do not read the insurance proposal and we only see …

The time has finally come! I am surprised that I have not touched on this topic before. There are more than 130 articles published and it is not until now that I write about the insurance proposal.

It will be that it is not important if you have not written before on the subject!

Well, yes, it is essential, because it is the first information that you will receive about the insurance you want to take out and that should allow you to select the best.

I have realized that the insurance consumer still does not dedicate the time of analysis that he needs to choose good insurance.

Too often we stay in the fat print, in the ad, and don’t get down to the details.

So this article is about that, about what information an insurance proposal should contain, they are generic but key aspects to know what to see.

7 Data that the insurer should report in its insurance proposal and that are not always available.

I have to admit that more and more insurers include an information note with the most important aspects of the contract in their insurance proposal. In the case of life insurance, the insurers have agreed and have standardized the information so that you can easily compare the different proposals.

The initiative comes to us from the EU and should be incorporated into the insurance distribution legislation – for now, pending approval in Congress – so insurers have chosen to gradually adapt their offers to the new requirements.

If you are one of those who subscribe to the insurance online, you buy it from the agent on the corner, the broker friend or you do it at the bank office, you should have an answer, in the insurance proposal, to these seven questions.

1. What risks are covered by insurance?

Depending on the type of insurance you will have some risk covered or others. In general, coverage is divided into two groups: basic guarantees – typical of the insurance branch – and optional benefits.

If it is car insurance, mandatory civil liability, and extraordinary risks, make up the basic coverage. The rest, voluntary CR, own damages, theft, fire, legal defense, or travel assistance, among others, are grouped as optional guarantees.

In damage insurance, especially in the so-called multi-perils, the same thing happens. The group of basic guarantees includes damages caused by fire, lightning strike, explosion, together with the supplementary costs associated with these causes; firefighters, rescue, debris, or the replacement of plans and documents, permits, and municipal licenses. Extraordinary or catastrophic risks are also included, the coverage of which is provided by the Insurance Compensation Consortium.

The list of damages covered as additional benefits in damage insurance is too broad to list in this post. Among them, some as relevant as damage from atmospheric phenomena, theft, breakdown of machinery or electrical and electronic equipment, or loss of profits.

In the field of personal insurance, it is normal for basic coverage to revolve around the risk of illness or accident. In both cases, benefits can be limited to medical assistance or receive compensation in the event of the insured risk ( death, permanent disability, or temporary disability).

2. Do the risks covered have any limitations?

You are already clear about what the insurance covers. Well, now it’s time to know the possible limitations of the risks covered. But beware that the limitations are not exclusions, what is not covered, we will talk about later.

Let’s go back to the limitations because it is important to know what you are going to find. Doubts must be resolved before contracting the insurance.

For example, in car insurance, it is common to limit the number of roadside assistance during the insurance annuity or the distance to your home to provide the service. Also, if there is any limit when repairing the moon in a workshop of your choice or those arranged by the company.

When it comes to health insurance, the waiting period of the different tests, diagnoses or treatments should be reported in detail. Also if there is a limitation to a certain number of assists in any coverage.

In damage insurance, the most frequent restrictions are related to atmospheric phenomena, establishing the minimum thresholds for the coverage to take effect. Thus, for example, in the case of rain, the precipitation must be greater than 40 l / m², while if it is the wind, the speed must exceed 80 or 90 km.

It is also very important to know the quantitative limits of certain guarantees, as well as the amount of the franchises, fixed or progressive, that the insurance includes.

All this information allows you to assess which insurance proposal is best for you, even among those that the same insurer can offer you.

3. What is not insured?

This is possibly the point that you should pay the most attention to in your insurance proposal. If the previous one dealt with the limitations of the covered events, this one focuses on the three groups of risks not covered and that normally affects all types of insurance.

Damages are caused by intent or gross negligence by the policyholder, insured, family members, partners, or beneficiaries of the insurance. Those, derived from the breach of contractual commitments, their penalties, or administrative or judicial sanctions.

If at some point it has crossed your mind to set fire to the house to get some money, better let it run because if you get caught, you will not charge a euro.

In a second group would be those damages caused by phenomena covered by the Insurance Compensation Consortium, the differences between the damages suffered, and the compensation paid by this entity. Damages as a result of armed conflicts, those classified as a catastrophe or national calamity, or caused by strikes or riots, would not be covered either. The same occurs with damage to the nuclear origin, losses, expenses for decontamination, or recovery of radioactive isotopes.

And finally, there is the group of damages related to the maintenance of the facilities. That is, where the cause that originates the damage is due to wear and tear, lack of preservation, own defect, or is not the product of a fortuitous event.

Hiring insurance and thinking that everything is covered is falling into a frequent error, the problem is that many times you only become aware when the accident occurs.

4. What is the scope of insurance coverage?

I am convinced that you know that, in-home insurance, the guarantees apply in the situation where you have indicated that the property is located. But it is possible that you are unaware that incidents that occur in the national territory, which affect civil liability, are also covered.

When it comes to vehicle civil liability, the territorial scope extends to the countries of the European Economic Area.

If you plan to travel outside the country, I advise you to check your health insurance, you may find yourself with some surprise, such as that in your destination you also have medical expenses covered.

But you should already be informed of all this, as long as the insurer has included it in its insurance proposal. Make sure they don’t skimp on information.

5. When is coverage start and when does it end?

From the inquiries that I receive from readers, together with the experience of years of work in the sector, I have come to the conclusion that the data regarding the period of insurance coverage is overlooked quite often. And it is important that the insurance proposal is well detailed.

The insurance can be contracted for a specific period of time (temporary insurance) or for a year, extendable for the same period of time (annual renewable). In the first case, the insurance expires on the agreed date without the possibility of extension.

In the second case, if neither of the two parties opposes its renewal when the expiration date arrives, the contract is extended for one year and the insurer will want to collect the corresponding premium.

You should pay special attention to the dates because some insurers have the habit of accommodating the expiration date as they please.

Some, the expiration date is adjusted to the first day of the month in which you contracted the insurance. For example, you have hired it on March 12, since the expiration will be set on March 1 of the following year.

In health and funeral insurance, the normal thing is that the expiration date is set to December 31, regardless of the date on which you subscribe.

If I want to cancel the contract, how do I do it?

If the insurance is extendable, knowing when it expires will allow you to cancel it under the legally established terms. The law establishes that it must be communicated at least one month before the renewal. But this term is maximum, so there are companies that have established more favorable terms for the insured (15 days).

In some cases, they have not only modified the term, but also the way in which to communicate the cancellation of the insurance. In this regard, the norm establishes that it must be done in writing, while for some it is sufficient to do so using the form provided on the company’s website.

When it comes to analyzing which insurance proposal is best for you, the small details also count and this should not go unnoticed.

6. What obligations do I have with the insurer?

As in any other contract, where the parties who sign it assume certain obligations, in insurance, too.

While the main obligation of the insurer is to pay the agreed compensation in the event that the loss occurs, the policyholder undertakes, among other things, to:

Accurately declare the information required in the insurance application, for a correct risk assessment. These data are often hidden or falsified and when the loss occurs we are surprised by its consequences.

While the insurance lasts, we must inform – in writing – the insurer of any modification that the declared risk suffers or of those other insurances contracted that guarantee any of the subscribed benefits.

In the event of a claim, notify the insurer of its occurrence as soon as possible and within seven days of knowing its existence. In addition, you are obliged to use the means at your disposal to lessen its consequences, providing all known information on the causes and consequences registered.

And most important of all, pay the established price for the insurance to start.

7. When and how can I pay for the insurance?

I assume that I do not have to remind you that you have to pay the insurance in advance if you want your coverage to take effect. From here on, the means of payment established for the initial and subsequent premiums will depend on each insurer. The normal thing is to use these means:

  • Direct debit in bank account : It is the most common and the one that presents the best response in successive renewals of the insurance, especially when we forget to cancel it on time.
  • Card payment : It is a means used in the payment of temporary insurance and especially the means used in contracting through the Internet.
  • Payment letter : Some entities still use this form of collection, in which you pay the amount of the payment letter at the bank window designated by the insurer.

You can agree on the fractioning of the payment with the insurer (monthly, quarterly, semi-annual), who will normally increase the premium according to the chosen type. The more terms you establish, the greater the increase.

Conclusion

Two other pieces of information should be added to this information about the insurance proposal: everything related to the protection of your personal data; where they are kept, who keeps them, and what they are going to do with them. The other data is related to the claims to the insurer; where and how to claim or what period of time you have to respond.

  • This is standardized information that, together with the following data, will allow you to decide what insurance you are going to hire. Do not forget to ask, if they do not inform you by:
  • The coverage of the policy, its limitations, and especially what is not covered.
  • What is the scope of insurance coverage, and depending on the type, if it has an extension abroad?
  • When it starts, ends, or what to do when you want to cancel it.
  • For the obligations, you acquire when hiring it or when and how to pay what it costs.

And like everything else, the insurance proposal also expires. It depends on each insurer, but the normal thing is that the proposal is valid for 15 or 30 days and always conditional on the declared terms of the risk being the same as those that have been used to propose.

When you are going to take out insurance, do you consider that you receive all the information you need?

It is your turn, leave us the answer in the comments, we are eager to know your point of view.

How to choose the best insurance company

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If I told you that it is possible to choose the best insurance company in record time, would you believe it?

If I told you that it is possible to choose the best insurance company in record time, would you believe it? Discover in this post the 5 questions that I ask myself and answer when looking for someone to contract my insurance with.

Insurers have come to a boil, selling their products as the best on the market or at mind-blowing discounts. And wait, we have entered the last quarter of the year, from now on, I am sure that they will redouble their efforts to see who gives more for less.

How to choose the best insurance company

These are just some of the slogans that insurers bombard on television, in the press, or on the Internet.

  • Contract now, up to 40% discount.
  • Come with any of your insurance, we will lower the price whatever it is.
  • 6 months free on your car insurance.
  • Your health insurance at a price never seen before.

Well, if I contract with this, it assures me that I will pay less than now. But the other one gives me a 40% discount so the price may be lower. Look, if they give me six months free they are discounting me 50%, even more than the previous one. Very cheap this health insurance has to be so that they can claim that they have never seen anything like it.

Uff! What a mess.

The decision in the face of such a similar offer is difficult, especially since we usually pay more attention to the advertisement than to the fine print. Yes, the one that appears at the bottom of the television screen and that you almost never finish reading when you start reading.

To help you with this mess, I recommend that you do not abandon reading the article now.

Is it the best price for the coverage you offer?

If you review the above slogans you will come to the conclusion that they are all based on the price of insurance. Insurers know that the insurance consumer is what takes into account first, leaving coverage in the background.

Price is undoubtedly a decisive factor when hiring insurance, but it should not be unique. The same insurer can offer different products within the same type of insurance. The differences between one and the other will cause the price to vary, but it is possible that when you choose the cheapest insurance you will stop contracting essential coverage in your case.

For example, you use your car to travel frequently on secondary roads, which means you run the risk of having an incident with a roe deer or a wild boar, if you do not have insurance for collision damage with hunting animals, you have 99.9 % chance that you will have to pay for the repair in the event of an accident.

Currently comparing the coverage before contracting the insurance will be easier for you with the information note that insurers have begun to include in their insurance proposals.

The commercial discount, a short-haul incentive.

The commercial discount is an argument to attract the consumer, especially when buying online. This practice, promoted by insurers who sell online, is increasingly being found in personal sales.

3 or 6 months free, 100 dollars discount, 30 dollars in gasoline checks. These are some of the promotions that you can find right now when subscribing to your insurance.

If you are one of those who cares about checking the insurance and the price every year, this type of offer may be perfect for you. Because that’s what it is about, a commercial discount valid only for the first year, after which you will have to pay the corresponding premium without reduction.

If I buy insurance through an insurance agent or broker, do I guarantee the best choice?

I’m going, to be honest with you, the answer is no. But…

Both the agent and the insurance broker go on commission. For every policy they sell to the company, it pays them a percentage of what it charges you for the insurance. The same happens if you contract the insurance through your bank or you do it online through an insurance comparator.

Doing it through one or the other has its differences. While the agent or the bank can only offer you the products of a single company, the broker, or the insurance comparator (behind there is always a broker), they will be able to analyze the entire market and offer you the best. But is the best for you or for them?

Objectivity is often set aside when incentivized to sell the more the better.

However, using a mediator can be a good choice to hire your insurance. If you do it with an agent or the bank, you may not have a good company or good insurance, but you will save time in choosing.

If your option is the insurance broker, the chances of contracting the policy that best suits what you need are many, as is having the best insurance company. Either way, you will have the last word when choosing between the three offers that you must present.

But you are one of those who do not like to have intermediaries and prefer to contract directly with the insurer, because in that case, you can do it in person, by phone, or online.

But something does not fit me, because if you have it so clear you would not be reading this post.

Is it easy to access after-sales and Customer Service services?

I am one of those who thinks that the best thing that can happen is never having to use insurance. What happens is that unfortunately sooner or later you will have to use it, so it is convenient to make sure that it is easy to access the services and benefits of the insurer.

In the event of an accident, it is essential to be able to establish quick contact with the insurer. Among other things so that you provide the contracted service as soon as possible, assess the damages and compensate without delay, or give you the freedom to choose a trusted professional.

But also, during the term of the insurance contract, you may have to resort to the insurer on more than one occasion. For example: to update information on risk, increase or decrease insured capital, negotiate new premiums, or claim a solution to the latest claim.

Sometimes the response or resolution is delayed, you consider the decision they made incorrectly and you want to complain. Knowing where and how to do it is crucial, so it has to be easy to access Customer Service. There is an obligation for this information to appear in the policy, but checking it before hiring it may improve positions to be the best insurance company.

Accessing these services should be easy and their assessment should be independent even if you have contracted the insurance through a mediator.

Is the solvency grade adequate to be the best insurance company?

Each consumer may have a different idea of the degree of creditworthiness that the best insurance company must have in order to deserve their trust. It is true that, as with banking, insurers are subject to periodic controls by the economic supervisor, to verify that the requirements of Solvency II are met. It is a calculation system, common to all European insurers, by which the economic capacity to face negative events that may occur is measured.

According to the employer, the insurers that operate in our market have about 2.5 times the resources necessary to cover the losses due to these events.

So according to this, solvency does not seem to be a problem, however, a little snooping in the finances of your candidates can provide relevant information.

Above all, because contrary to what happens when you buy a loaf of bread, which you can sink your teeth into at that moment, in insurance, you buy expectations that the contract will be fulfilled when the insured risk occurs. You pay in advance and you don’t know if when the time comes, the insurer will continue to have that money.

What opinion do your family and friends have about the insurer?

Word of mouth has always been one of the best ways to attract customers. And to lose them!

In the market, there are still more than a hundred insurers selling their products, but more than 50% of the market is concentrated between five insurance groups. If we take these data into account, it seems that many policyholders do well in the same company.

And how is your reputation on social media?

Today word of mouth has been replaced by social networks and insurers know it. Their presence is increasingly evident, as evidenced by the 2.6 million interactions on their own profiles. The network where insurance has the greatest presence is Facebook with 84% of interactions, behind Twitter with 11% and Instagram with 5%.

This presence on the networks is used by users to interact with insurers in such a way that those that pay more attention and less response time obtain better customer service. For you, who are not yet, it is a source of data on what they think of the company in question.

We are in the information age and there is so much out there that it can be overwhelming, especially if you are new to the subject. However, sometimes it is necessary not to succumb and spend a little time selecting the product or service that you are going to purchase. Insurance is no different, and choosing the right one together with the best insurer is a job that has to be done beforehand.

As in any other investment, hiring an insurance policy requires a detailed analysis of the offer, the conditions it includes, and the insurance company that makes it. And that’s where the answers to these questions come into play in determining whether you are dealing with the best insurance company.

  • I would be wary of an insurer that offers the greatest coverage at the lowest price. It could be a strategy to save your ass.
  • Contracting insurance with a company through an agent or broker does not guarantee that it is the best … but the possibilities of doing it well increase, and even more knowing that the choice will continue to be in your hands.
  • Access to Customer Service or after-sales services must be done easily and is an essential requirement in the best insurance company. The obstacles or delays to communicate with her usually have a cost. You can imagine who pays for it, right?
  • The financial solvency and social reputation are two other factors that should be borne in mind when choosing.

Feel free to explore other factors in choosing the best insurance company.

What strategy do you use to contract your insurance?

Leave your answer in the comments, we are happy to read your comment.

The insurance fine print that may surprise you

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insurance fine print

One of the great myths about insurance is the amount of fine print you can find on the policy. Or at least that’s what happened a while ago. Currently, the contents and limitations of the insurance policy have been simplified and the size has been equalized.

That doesn’t mean that the myth is gone, the font is bigger and usually in bold, but still, it may still surprise you. And almost always the surprise is negative.

I have been involved in insurance for more than three decades and still today I hear how the insurer clings to the fine print to avoid paying.

So I think the time has come to dedicate an article to the limitations of the insurance policy that cause so much abuse.

Let’s go with it!

How are the clauses of the insurance contract different?

As in any other contract, in the insurance contract, there are also stipulations and clauses that bind those who sign it. In the article on how to interpret an insurance policy, I tell you about the parts that make up the contract. In this one, we are going to see what is the difference between the delimiting clauses and the limiting or excluding clauses.

The general and particular conditions will be drawn up clearly and precisely. Clauses limiting the rights of the insured will be highlighted in a special way, and they must be specifically accepted in writing.

The Insurance Contract Law has been in force for about 40 years and although it has undergone several updates, the last one took effect on January 1, 2016, a few Supreme Court rulings have been needed to precisely define the difference between the risk delimiting clauses and limiting clauses in the insurance contract.

For the TS, the risk delimiting clauses are those whose purpose is to define the object of the insurance, specifying which risks, if they occur, will entitle the insured to receive the agreed benefit.

However, by limiting clauses, he understands that they refer to conditioning or modifying the rights of the insured and therefore the compensation, once the event that is the subject of the insured risk has occurred.

The insurer will compensate for the market value of the car if you collide with a lamppost and you are not drunk.

This is a typical example of self- damage coverage in car insurance. If you collide with a tree (insured risk) the company will pay you the market value (coverage limitation), as long as you do not drive the car drunk (limiting condition).

What delimiting clauses can I find in my insurance policy?


Simple, right?

Of course on paper, if it seems so.

But things get complicated when they put a booklet with more than 40 pages on the table. Packed with articles, bold text, and different font sizes or taking you from one article to another.

As I was saying, risk delimiting stipulations are those that define the object of the contract. That is, they define and specify:

  1. What are the risks that constitute the object of the insurance.
  2. What amount is insured and what are the limits of the benefit.
  3. During what period it is constituted,
  4. In what time frame.

Its purpose is to establish, without ambiguity, the objective bases of the nature of the risk in coherence with the object of the insurance. If we take this to your insurance, you will find these delimiting clauses:

The clauses that define the risk.

This group includes the conditions that describe the risk and the coverage provided by the insurance contract.

They are clauses whose wording must be clear and understandable, although they do not need to be highlighted in the policy. These are some:

  1. Those that identify the parties that establish the contract, insurer, and policyholder, insured, or beneficiaries.
  2. They determine the people, property, or activity that is the subject of the insurance. If what you are insuring is a house, a car, an activity, or if it is health insurance or life.
  3. Where the risk is located and what are its characteristics and identifiers. The place where the home, business, or community is located, what are its characteristics, what prevention and protection measures it is equipped with, or the license plate and accessories installed if it is a vehicle.
  4. Sums insured. It is the value that we assign to the insured assets in the event of a risk.
  5. What risks are covered, which must be consistent with the nature of the insured property? If the object of the insurance is an asset (the house, the car, or the mobile ) the risks covered will be repaired or replaced. When it comes to people, the defined risks will be aimed at providing a service, medical care, compensating the insured or his beneficiary. For example, if you die or become disabled.
  6. The period of coverage. These clauses determine when the insurance begins when it ends if it is possible to extend it and for how long.
  7. The price of the insurance. It is one of the most important insurance conditions, so you must detail what makes up the price, and the conditions, if any, for its update.

Delimiting clauses of the contract.

There are other conditions in the insurance contract that delimit certain rights and obligations of the parties, which by their nature must be significantly highlighted in the policy.

Fundamentally, they are clauses that establish the limits provided by the insurance coverage or the procedures that the insured and insurer must follow in certain circumstances.

The clauses referring to the coverage limits are made up of those that determine the amount of compensation assumed by the insurer in each guarantee or all of them, as well as the deductibles or deficiencies that the insured assumes in each of the benefits. Insurance.

Other conditions do not become limitations of the insurance policy but that must be highlighted because they regulate the conditions and deadlines to oppose the extension of the insurance or its unenforceability. Also how to act in the event of a claim or how will be the communications with the insurer.

The limitations of the insurance policy. A (not so) small letter that may surprise you.

The limitations of the insurance policy are established by the so-called limiting or exclusive clauses. These are those that restrict, condition or modify the rights of the insured to compensation or the provision of the service by the insurer, once the event that is the subject of the insurance has occurred.

A few lines earlier, it referred to the fact that these are clauses that must be highlighted especially in the contract and that must be expressly accepted in writing by the policyholder. This is intended for the insured to have exact knowledge of the conditions that regulate the insurance contract.

The Supreme Court considers it sufficient that the limitations of the insurance policy are drafted in such a way as to allow the insured to understand their meaning and scope to differentiate them from those that are not of that nature.

By saying this, you validate your writing in bold or so that they stand out from the rest. Regarding the express acceptance in writing, it considers that the policyholder must sign both the general and the specific conditions, as these are the ones that usually contain the limiting clauses.

The jurisprudence has highlighted the differences established in article 3 of the LCS between the limiting and harmful clauses. While the former, even without being favorable to the insured, are considered valid referring to the nature of the insurance contract, the latter is always invalid.

Having identified the difference between the delimiting clauses and the limiting clauses, now it is time to see how the limitations are grouped in the insurance policy.

The limitations on all insurance coverage.

Many times it is difficult to distinguish between the delimiting clauses from the exclusive ones, despite being highlighted by a different typeface or highlighted in a different color, like those in the previous image.

However, we can distinguish between two groups of exclusions: those that affect all the coverage of the contract and the individual ones of each guarantee.

The limitations of the insurance policy that affect all the guarantees revolve around:

  • Damages that occur before contracting the insurance or are different from those defined in the contract.
  • Those events are related to the attitude and activity of the insured. Those caused by intent or gross negligence, inexcusable negligence, or neglect in the maintenance of the goods are excluded.
  • Those declared by the public power as catastrophic or national calamity are also excluded. Those due to phenomena of nature or whose coverage is paid by the Insurance Compensation Consortium.
  • The expropriation or requisition of property, by the imperative of any government or those that occurred in war conflicts.
  • And normally, the payment of fines or penalties of any kind.

These exclusions, common to practically all contracts, are joined by others specific to each type of insurance.

The particular limits of each guarantee.

One of the characteristics that must govern an insurance contract is that the conditions that define it must be related to its nature. This requires that each of the coverage you provide has its own limitations or exclusions.

If you compare the previous image with this one, you will see that both are related to theft coverage. But while the former corresponds to home insurance, the latter refers to car insurance. Both are part of the respective general conditions and may be modified or suppressed through the particular or special conditions of the contract.

Both the general and specific exclusions of each guarantee must be known and expressly accepted by the insured. This consent requires that both the general and particular conditions must be signed in writing. If the contract is signed online, the acceptance can be made digitally.

Harmful clauses, without effect for the consumer

The general conditions, which in no case may be detrimental to the insured,…

In this way begins article 3 of the Insurance Contract Law, whose content gives as much play as to write this post.

The aforementioned text, in addition to referring to the delimiting and limiting conditions of the rights and their acceptance by the insured, is picked up from the start mentioning a third group of clauses, the harmful ones.

But while the former may be valid, although they require the express acceptance of the insured, the damaging clauses are not, as long as they may leave the content of the contract empty or frustrate the economic purpose for which the subscriber is signed.

As you can see, the concept of the injurious clause is more restrictive compared to the limiting one, making them invalid or null.

But it is also that the law requires its withdrawal from the insurance contract in the event that any of the general conditions of the contract is declared void by the Supreme Court.

Final thoughts

Anyway, I have come up a bit and the article has become a bit long, but the better you understand what the limitations of the insurance policy are, the better you can defend your rights before your insurer.

If you still have any doubts, this is the essential information about the three types of conditions that you can find in your insurance:

  1. The clauses whose purpose is to determine or delimit the object of the contract, define the risk, its amount, or the term and scope of coverage.
  2. The limiting conditions whose purpose is to condition or limit the rights of the insured and therefore their compensation provided that the insurance risk had occurred.
  3. Harmful or surprising clauses, which reduce the content of the insurance contract in such a way that it is impossible to access coverage for the claim.

For me, a fundamental aspect when it comes to qualifying insurance is in the limiting clauses it contains because as an insured, the less my rights limit the better.

Do you still have doubts about any clause of your insurance policies? Leave it in the comments section.

The consequences of lying when filling out the health insurance questionnaire

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health insurance questionnaire

The health questionnaire is for insurers an essential tool to know the risk and for the insured a source of conflict if their answers lack the required veracity and it occurs …

The health questionnaire in life or health insurance has become a fundamental tool for insurers.

While to contract car insurance, the insurer looks, among other things, in your history as a driver, in life, or health insurance they are interested in knowing your lifestyle or physical condition. Based on this information, they will delimit the risk and establish the conditions that will govern the contract.

The policyholder has the duty, before the conclusion of the contract, to declare to the insurer, in accordance with the questionnaire that he submits, all the circumstances known to him that may influence the risk assessment.

So all the insurers in the market require that the insured answer a questionnaire as a prerequisite for contracting the insurance.

And it is the insured who has the duty of the declaration, so it must be he and not another, who truthfully answers the questions to which the insurer submits.

What do insurers want to know from the health questionnaire?

A few years ago, the health questionnaire was not so decisive for the insurer to accept the insurance application. Today things have changed and the insurer gives the health questionnaire capital importance, without it, it will not be possible to take out the insurance. In many cases, acceptance is conditional on the approval of the insurer’s medical office.

It should be emphasized that the health questionnaire to which the insurer submits you must meet certain requirements. It must contain questions relating to the health of the insured, be reasonably detailed, and cannot be subject to interpretation. It may not contain questions related to private life, such as the candidate’s sexual orientation.

But the insured is only obliged to answer what is asked, nothing more. Therefore, if the insurer has not asked about it, later it will not be able to claim that the information has been withheld.

Normally the health questionnaire is made up of these three sections:

Life habits

These are issues related to daily exercise, tobacco use, alcoholic beverages, or drugs.

Medical history

It lists all the issues related to illnesses you have had, surgical operations, chronic pathologies or accidents, and sick leave. In addition to detailing the above, the insurer is also interested in knowing when it occurred or was diagnosed, so it will ask the date.

Actual state

This section is intended for you to report if you are in treatment for any ailment, the drugs you take, or, for example if you suffer from any type of allergy.

Depending on the content of your answers, the insurer may request medical information on a certain condition or carry out additional medical tests. In this case, don’t worry about the expenses, the medical check-up is on your own.

Why be honest when answering the health questionnaire?

The health questionnaire is the condition imposed by the insurer to access life or health insurance.

And many times we are not entirely sincere in our responses. If we cheated our mother with the number of drinks or cigarettes, why not do it with the insurance. We also assume the role of a physician for a while, assessing how relevant the question is, and if it has been many years since our tonsils or meniscus were removed, we don’t count it. And unless we are taking pills, cholesterol, glucose, or transaminases, they will always be fine.

But it is that article 10 of the LCS includes another paragraph that says verbatim:

The insurer may terminate the contract by means of a statement addressed to the policyholder within one month, from the knowledge of the reservation or inaccuracy of the policyholder. Unless there is intent or gross negligence on their part, the premiums relating to the current period at the time of making this declaration will correspond to the insurer .

Omitting relevant information, about which the insurer has asked in its health questionnaire, is the reason for terminating the policy. But, if you also prove that it has been omitted on purpose, you will lose the right to a refund of the premium.

If on the occasion of a claim, the insurer became aware of the inaccuracy in the declaration, it could:

  • Reject the consequences of the accident,
  • Reduce the compensation in proportion to the difference between the premium paid and the one that would have been received if the true entity of the risk was known.
  • Include an exclusion in the policy, regarding that ailment.

The inaccuracy in the health declaration is the first argument that the insurer will use to reject the claim. Later, in case of litigation, you may find that you have supplemented it with that the policyholder acted in bad faith (fraud) or gross negligence. Later you will discover how to counteract this situation if you see yourself fully involved.

Do I have to fill out the questionnaire myself or can the bank or the insurance company do it?

It happens many times that in the confidence of the person who makes us the insurance, we fill out the health questionnaire, without the necessary attention. Whoever asks takes it for granted that he knows us well enough not to make a mistake by answering on our behalf and for whom he must answer, it is less compromising than giving explanations. So, without further ado, we stamp the signature on the questionnaire accepting its content.

This situation is frequent when the person filling in the form is the bank manager, the broker, or the insurer’s agent. In both cases, the desire to sell a policy or sign the loan turns such an important event into a mere procedure. And as we have seen, the repercussions of not being honest with the insurance can lead you or your beneficiaries not to charge a dollar.

When this happens and the insurer rejects the claim, the conflict arises. Some of these claims have reached the Supreme Court, which has spoken according to each case. These are some issues on which it has already spoken and in a positive way for the interests of the insured.

On certain occasions, it has been considered irrelevant that the form has not been filled in by the insured, taking into account the amount of personal data provided to the insurer and that he would not have known otherwise.

Absence of intent or gross negligence

One of the reasons argued by the insurer for denying insurance benefits is the existence of bad faith (intent) or gross negligence of the insured, for not answering truthfully or with the intention of deception, to the questions of the health questionnaire.

It has been ruled out by the TS that there is fraud when it is the bank employee or the insurer’s agent who fills out the health questionnaire and the client is limited to signing it. It has been considered that this fact is equivalent to the failure to submit the form by the insurer and therefore its consequences cannot fall on the insured.

The same reasons have been argued to reject the position of the insurer when the questionnaire is not filled out, nor signed by the insured.

conclusion

If for insurers the health questionnaire is a fundamental tool to assess risk, for the insured it is the key to access to life or health insurance.

But if the key is not correct, you may enter a maze, in which the insurance company has an advantage. To try to be on an equal footing, you must be sincere in your answers when you go to answer the questionnaire that the insurance company puts in front of you. If the company does not want to insure you, it is better that they tell you before and not after paying the insurance for a few years.

Lying on the health questionnaire is one of the most common reasons why insurers reject the insured’s claims. The normal thing, when it happens, is that they deny the medical benefit or reject the payment of the insured capital.

And if they consider that there has been intent or gross negligence in the declaration, they could cancel the contract.

Have you been entirely sincere in responding to the health statement? Has it brought you consequences?

Leave us the answer in the comments, we will be happy to read you!

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