Thursday, August 10, 2017

Off Topic - Insurance Revenge Public Service Announcement

Please read the below article - describing how you can prevent this from happening to you if you are a member of another's family plan and not the subscriber yourself.

Laws that prevent insurance revenge

Residents of some states have built-in legal protections to prevent abuse of auto, life and health insurance.
"In California, we have statutes to guard against insurance revenge," says John Harding, a Pleasanton, Calif.-based family law attorney who runs the law firm Harding & Associates.
"When you file for divorce in California, there are automatic temporary restraining orders that take effect, and standing court orders prohibit either party from canceling any insurance."
You have to get the express written consent of the other spouse or a court order to cancel insurance, Harding notes. What happens if a person allows an insurance policy to lapse out of simple distraction, or actively cancels a policy out of animosity during a divorce? In either scenario "you're in contempt of court," Harding says.
Legalities notwithstanding, some California residents still try to cancel insurance coverage during a divorce, according to Kelly Chang Rickert, a Certified Family Law Specialist in Los Angeles. That's why she recommends sending a "notice of adverse interest" to insurance companies.
"This is simply a letter letting your insurer know that you are going through a divorce and that they are not allowed to cancel you as a beneficiary or to cancel your insurance while the divorce is pending," says Chang Rickert.
Even if the law doesn't require it, Harding strongly advises people in these situations to keep their insurance policies in force.
"It's money well-spent because all of those policies safeguard you against risk and adverse events," Harding says. "This is not an area where you want to be shortsighted, stupid or spiteful."

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