Business and individuals purchase insurance policies as a means of protecting themselves from unexpected losses that might occur. An insurance policy may be terminated in a variety of ways: it may lapse, be terminated by the insurance company, or be cancelled by you, the insured. Lapse of an insurance policy generally occurs as a natural consequence of the end of the agreement of insurance coverage according to the particular policy language. Lapse of coverage is distinctly different than cancellation of an insurance policy in that lapse generally does not require notice to you, the insured, whereas cancellation generally does. The reasoning for requiring notice for cancellation arrives from the public policy argument to allow an individual time to obtain new coverage.
Generally speaking, an insurance company is not required to give you notice prior to the lapse of an insurance policy because it is presumed that you have knowledge of the insurance policies duration. Under Louisiana law, if an insured fails to pay the premium due, the insurance contract entered into between the plaintiff and defendant lapse under its own clear terms. Guidry v. Shelter Ins. Co., 535 So. 2d. 393, 396 (La. Ct. App. 1988). However, some states do require that an insurance company give their insured notice prior to lapse. The variance in each states law makes evaluation and analysis of cases involving lapse in insurance coverage very complicated.
It is important to note that an insurance company may waive lapse of insurance coverage for non-payment if they accept and retain the past-due premium. It is also possible that conduct by the insurance company may estop them from claiming lapse of an insurance policy.
The complex nature of the lapse of insurance coverage makes it imperative that you retain competent insurance coverage counsel that fully understands lapse in insurance coverage matters, the distinction between lapse and cancellation of coverage, and the implications of each. At the Berniard law firm, we seek to ensure insurance companies meet their obligations. We seek to ensure you receive any and all coverage you are entitled to under your insurance policy.
We have experience dealing with lapse in insurance coverage matters and have the experience necessary to understand your legal needs. We have a substantial knowledge base of insurance coverage and understand the importance of these matters. The innovative hands-on approach taken by our firm ensures that your rights under the insurance policy are protected.
Speak With an Attorney Today
The Berniard Law Firm is happy to speak with you regarding your lapse in insurance coverage matter. There are two ways to contact us regarding your coverage dispute you may CALL us at (504) 521-6000 to speak with an Attorney about your lapse in coverage matter, or you may complete the CONTACT US form, in which case an Attorney will contact you within 24 hours.
All initial consultations are free and all cases are handled on a contingency fee basis. This means that there will be no costs for you unless there is a settlement of your case or an award by a court. Please contact us today so we may immediately begin working on your case to get you the compensation you deserve.
Co-Counsel and Expert Consultation Services
The Berniard Law Firm is happy to take on any role necessary to help individuals and businesses obtain coverage they are entitled to. The Berniard Law Firm has worked in a variety of roles as lead counsel and co-counsel, as well as consultation and expert services. Our attorneys have worked with corporate counsel, corporate risk managers, public insurance adjusters, corporations and contractors during all phases of the claim process from claims adjustment and investigation to mediation, litigation, and all other phases of the claims process. Please CALL the Berniard Law Firm today to speak with an attorney regarding our services. We thank you for your time and look forward to working with you to ensure you get the coverage you paid for.
