cancellation of policy

[Sebastian]

I recently bought a used 27' sailboat and had the incredibly bad luck
of having a accident (hitting submerged rocks off the coast of an
island) during the first week. Although I've done a lot of sailing
before, this was the first boat which belonged to me personally, and
thus the first one I had a policy on.

Question is the following: the insurance broker threatened that our
insurance company would pay the claim but then cancel the policy. The
policy was for a full year. Can they cancel it just because we got in
an accident so soon after it was issued? I mean, I can see how
they're not so pleased, having received 450 premium and immediately
having to pay out a couple of thousand dollars, but on the other hand
that's the risk they assume, no?

Any advice would be most welcome.

Thanks,

Sebastian

[Isa]

The real answer is, it depends on what state you live in - the laws on
this vary from state to state. Here in Pennsylvania, a company can
cancel ANY policy for ANY reason within the first 45 days.

So if this was a PA policy, the answer would be yes.

Isa

seba...@infoneighbor.com (Sebastian) wrote in message news:<ec705c0f.0306...@posting.google.com>...

[Christine]

In Texas a company can cancel a new policy within the first 60 days for any
reason. The only exception is racial discrimination.

Chris in Pearland, TX