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Bus Insurance – Cancelled

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Most bus company owners are unaware of the requirement of your local DOT and the Federal Motor Carrier Safety Administration that a cancellation of insurance by the insurance company requires 30 days advance notice to the Agency. The time is calculated from the date of receipt, not the date of mailing, so the insurance company must be very careful to properly calculate the notice period.

Why is this important? It isn’t important if you pay your insurance premiums when they are due and maintain your insurance coverage in good standing. However, things happen and let’s assume you fail to make a payment and receive notice of cancellation. It is important to note the date of mailing, the date of receipt, and the effective date of cancellation given to the Regulatory Agencies. More times than not, the insurance company has improperly calculated the cancellation date and not given the required notice.

Can the insurance company cure the error? Sure, by sending out a new 30 days notice.

If you are caught in the situation of receiving a cancellation notice, and the insurance company will not agree to reinstate coverage upon payment of the arrearage, check the date on the cancellation notice. Was 30 days given? If not, notify the Federal Motor Carrier Safety Administration and your local DOT of the error. If this fails, get an attorney quickly who can get into Court on short notice for a restraining order to prevent the notice from becoming effective. Or, better yet, and possibly cheaper for you, contact an experienced Transportation Attorney who can persuade the insurance company to back off and reinstate your coverage upon payment of the arrearage.

Jerry A. Casser, Esq. (Fairfield NJ Transportation attorney)  www.jcasser.com

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