Insight

What To Do When the Insurance Company Cancels Your Long Term Care Policy?

Learn what are the important next steps to take if your policy is cancelled

Lisa S. Kantor

Lisa S. Kantor

November 2, 2023 05:25 PM

Do not assume that the insurance company properly cancelled your policy. You should have the cancellation of coverage reviewed by a long-term care attorney. Insurance companies repeatedly cancel insurance policies in violation of the terms of the policy and/or statutory law.

The most common examples of improper cancellations of coverage include the following:

1. When there has been an unintentional lapse of coverage due to nonpayment of premium because the insured has cognitive issues or is experiencing a health crisis.

2. The insurance company fails to give the notice of lapse as required under the Policy before cancelling the coverage.

3. The insurance company fails to give notice to the third-party individual designated by the insured as required by statutory law.

Before an insurance company can cancel your policy it must strictly comply with the terms of the policy and statutory law.

The burden of proving cancellation falls squarely on the insurer.
K. C. Working Chemical Co. v. Eureka-Security Fire & Marine Ins. Co. (1947) 82 Cal.App.2d 120, 130 (citing
Rossini v. St. Paul Fire etc. Ins. Co. (1920) 182 Cal. 415, 420 and
Bebbington v. California Western etc. Ins. Co. (1947) 30 Cal.2d 157, 158).

In Mackey v. Bristol West Ins. Services of California, Inc., (2003) 105 Cal. App.4th 1247, 1257-58, the Court of Appeal held that in California, “notices of cancellation must strictly comply with statutory directives and the insurance policy’s termination provisions.” Id. If they do not, then the cancellation is ineffective and the policy remains in effect “regardless of whether the insurer acted upon a valid ground for canceling the policy,” such as nonpayment of premium.

Additionally, if there is any ambiguity in the Policy as to notice requirements before an insurance company may cancel a policy, it is a “fixed principle of California law” that ambiguities or uncertainties in a policy of insurance are to be construed against the drafter.

Holz Rubber Co. Inc. v. American Star Ins. Co., (1975) 14 Cal.3d 45, 55 and see also, Perkins v. Allstate Co., 63 F. Supp.2d 164 (E.D. Cal. 1999). That is especially so in the case of a forfeiture, such as cancellation of an insurance policy. As the California Supreme Court has stated, “[i]t is a well-recognized principle of law that forfeitures are not favored and will not be upheld in contracts for insurance if by a reasonable construction it can be avoided; and that when the words of a contract are susceptible of two interpretations, that interpretation which will sustain the claim must be given preference.” Bittinger v. New York Life Ins. Co., 17 Cal.2d 834, 841 (1941).

Kantor & Kantor’s caring and knowledgeable attorneys are here to assist you with your long-term care insurance needs. We offer free consultations, so get started with us today by completing our online form or calling our office today.

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Revealing the 2026 Best Lawyers Awards in Germany, France, Switzerland and Austria


by Jamilla Tabbara

These honors underscore the reach of the Best Lawyers network and its focus on top legal talent.

map of Germany, France, Switzerland and Austria

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Medical Malpractice Reform Trends in Texas, Utah, Georgia and SC


by Bryan Driscoll

A fresh wave of medical malpractice reform is reshaping the law.

Medical Malpractice Reform Trends hed

Why Jack Dorsey and Elon Musk Want to 'Delete All IP Law'


by Bryan Driscoll

This Isn’t Just a Debate Over How to Pay Creators. It’s a Direct Challenge to Legal Infrastructure.

Elon Musk and Jack Dorsey standing together Infront of the X logo

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

Common Law Firm Landing Page Problems to Address


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers

How to Create High-Converting Landing Pages for Your Law Firm


by Jamilla Tabbara

Learn how to create high-converting law firm landing pages that drive client engagement and lead generation.

Laptop screen displaying website tools to improve client conversion rates