Whenever a right to rescind a contract of insurance is given to the insurer by any provision of this part such right may be exercised at any time previous to the commencement of an action on the contract. The rescission shall apply to all insureds under the contract, including additional insureds, unless the contract provides otherwise.
The ContractRescission
Section § 650
This law states that if an insurance company has the right to cancel an insurance contract, they can do so at any time before a legal action is started on that contract. When the insurance is canceled, it affects everyone covered by that contract, unless stated differently in the terms.
rescind insurance contract right to rescind contract cancellation
Section § 651
If your car insurance company decides to cancel your policy and you ask them why, they must explain the reasons to you within 15 days. This explanation was made safe from legal consequences for the company. However, if they don't provide this information, you can ask the insurance commissioner for help to get the necessary details.
Whenever an insurer gives notice of rescission of an automobile liability policy, upon request of the driver, the insurer, within 15 days of receipt of the request, shall furnish to the insured a statement setting forth the ground or grounds upon which the notice of rescission is based. There shall be no liability on the part of, and no cause of action shall arise against, any insurer or authorized representative, or its licensed investigative sources, for any statements made by them in a written notice required to be given pursuant to this section. If the insurer fails to comply with the provisions of this section, the insured may apply to the commissioner for a certificate of the facts or information desired. Any such request shall be made in accordance with Article 3 (commencing with Section 12950) of Chapter 2 of Division 3, and the commissioner shall exercise any power conferred upon him by that article as may be necessary to ensure compliance with this section.
car insurance cancellation notice of rescission statement of grounds
