Residential Insurance

Residential Insurance: Homeowners and Renters 22 If the premium revision results from an error made by the company or its agents, or from incomplete information provided by you, the insurance company is required to notify you of the error within sixty days and the higher premium shall be charged from the effective date of coverage. If you do not accept the increase in the premium, you may ask the company to cancel the policy. The earned premium must be calculated on a pro rata basis on the original quotation. If the premium revision results from an error made by the company or its agents and you are not notified of the error within sixty days, the policy shall remain in force as written at the original premium. After the sixty day period has expired, the insurance company may flat cancel the contract for misinformation and/or misstatement or other matters sufficiently serious to justify a flat cancellation. Refunds In general, whenever the policyholder initiates a cancellation, the premium is calculated on a short rate basis whereby the company retains part of the unearned premium to cover administrative expenses. However, some companies may calculate the premium on a pro rata basis. You will need to review your policy contract to find out the cancellation provisions of the company. The insurer is required to issue payment for the amount of refund due within 25 business days of receiving notice of the cancellation. In addition, if you have acquired the services of a broker and signed an agreement, the broker may be entitled to retain the broker fee. You may be entitled to a full refund of the broker fee if the broker acted incompetently or dishonestly. Unresolved disputes over non- refunded broker fees can be forwarded to the CDI for review.