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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10646
Experience:  30 years of corporate, litigation and international law
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I been a business owner here, for like 20 years now at a small

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I been a business owner here, for like 20 years now at a small auto shop in CA. This is what happened in my case. Right, when i first opened up my shop to do business i purchase insurance coverage for my shop. Everything was great, and i continued to get my insurance from the same agent. Like, ten years down the road, business slowed down and i was unable to keep my coverage as i was set up on a monthly period payment. So, i fell behind on that payment in that month and recieved a letter of cancellation like 10 days there after. In order for me to continue with my coverage, it was required of me to pay an additional fee, and reinstatement fee for the coverage. I was unable to do so, and my policy was canceled. I understood, this very well as I was unable to pay and so the insurane co. canceled me. Then, one or two years down the road my insurance agent guy had called me up to renew the policy. I was able to make coverage at that point and continued with the coverage. So, i got coverage again for another 5 or 7 years then economy slowed down, i was unable to afford it again and the insurance co. send me a cancellation of policy in that very same month. The following month i got a letter in the mail from the insurance co. asking if i wanted to renew my policy and pay a reinstatement fee in order to be covered. I was unable to do so and understood, that my policy was canceled and i had no coverage. I understood, this and accepted it because i could not afford it at the time. Another 2 years gone by and another agent from Farmers insurance came to my shop to offer me insurance at a lower rate so i got my coverage again. Within, the following month another insurance broker came to my shop and offered me lower rates as i canceled my policy and got my coverage with his firm. Now, just recently i got letter in the mail from another Farmer agent demanding money from my old policy inwhich had been cancelled for some time now. He demanding, coverage premiums in between the yea
Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. I want to be sure I understand. You had a policy for years 1-10 and then were terminated for non payment. Now the agent is claiming that you owe money for periods when you had no coverage is that correct?
Customer: replied 4 years ago.

yes, some how they had transfer my case to some new agent i never did business with. He coming back to make me pay for all the years inwhich my insurance canceled on me. He putting me thru collection making me pay for coverage that was canceled from the time period i had no coverage. My old agent was fine with it. but, during the course of the year down the line. I was in and out of the policy, but each time i wanted to renew they would make me pay a re in-statement fee. My old agent would not hold me accountable as he had called me up, as i told him i was unable to afford it. when, i did renew with him and continued on. He retired, as my policy canceled during his term when i was unable to make the monthly payment again. Right after that the insurance co. had canceled. It was the right thing, because i could not make the payments or to be re instated. Now, just in the recent months this new agent keeps on sending me bills for all the payment in between the policy , which was canceled. I never renewed my terms there after as i told out insurance else where. He took over, on this policy as it was terminated a long time ago by the insurance co when i missed a payment. but, it was canceled before my agent had retired. Now , this new agent wants money in between the years of the termination period. I am also talking to consumer affairs as they are helping me resloved this as well too. I would like to have you help me if you can? This is unfair, business practice. thank you Lam Lai

You do not owe anything. Write the agent in question and tell him the policy was canceled for non payment. When it was reinstated, you paid the required fee and the policy did not cover any period during which the policy was canceled. Further inform him that if he continues to harass you or does not withdraw your account from collection you will file a complaint with the Insurance commissioner and if it is not withdrawn from collection you will file suit against him under the Fair Debt Collection Practices Act. If he persists, call the insurance commissioner for your state and file a complaint. If the collection persists inform the collector that there is no debt to collect and that he will be joined in the suit under the FDCA. The act provides for collection of attorneys fees so a consumer protection attorney may take your case on a contingency. That is how I recommend you proceed.

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Hi I was just following up to see how you made out. If you have any additional questions or I can help on a different topic let me know.

Customer: replied 4 years ago.

I talked to the insurance agency today and explain to them my policy had cancelled along time ago, for non-payment. So, it looks like she will call me back on Monday on this. In the meantime, what you recommend i do? because the collection agency call me here daily. I don't think, they will resloved this for me. Please help me?

On the collection agency tell them that they should only contact you by letter, that will stop the phone calls. in the same letter tell them there is no debt owed and if they do not stop harassing you, you will file suit against them. Have you tried contacting a consumer affairs lawyer who may take your case on a contingency. You can find such lawyers on or where they are listed by specialty and geographic area.

Thank you for the excellent rating.
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