5 Things That Can Make Insurance Agreements Cancel

Queenews.com- An insurance agreement is an agreement between the insured and the insurance company to protect the insured from certain risks by paying a premium.

However, there are several things that can make the insurance agreement void. In this article, we will discuss several factors that can affect the cancellation of an insurance agreement.

1.Error or Fraud in Submission of Claims

One of the things that can make an insurance agreement void is if the insured party provides false or fraudulent information in submitting a claim.

If the insurer finds any error or fraud in the claim, they have the right to cancel the agreement and refuse to pay the claim.

Therefore, it is important for the insured to provide accurate and honest information when submitting a claim.

2.Unpaid premiums

Premium is the amount that must be paid by the insured party to the insurance company to get insurance protection. If the insured does not pay the premium on time, the insurance company can cancel the insurance agreement.

In this case, the insured will no longer receive insurance protection and premiums previously paid may not be returned.

3.Violation of Terms of Agreement

Violation of the terms of the insurance agreement can also render the agreement void. The provisions of the insurance agreement cover various things, such as the obligation of the insured to report changes in risk, proper maintenance of the insured goods, and so on.

If the insured party violates any of these conditions, the insurance company can cancel the agreement.

4.Significant Risk Changes

If the insured risk changes significantly, the insurance company can cancel the agreement. For example, if the insured party changes the use of the insured property to a more high-risk activity without notifying the insurance company, the insurance company has the right to cancel the agreement.

5.Conditions Not Qualified

The insured party may also not qualify for insurance. For example, if the insured has a poor medical history or is involved in activities deemed high risk, insurance companies may refuse to provide insurance coverage or cancel the agreement if they become aware of this after the agreement was made.

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