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A while now insurance companies are becoming more stringent with regard to the claim for cancellation policies outside deadlines.

You should know that if you sr. the client does not communicate with the advance established in the art. 22 of Law 50/1980 opposition to the extension of the contract the company has the right to reclaim its extension by means it considers appropriate.

In other words, if an insured fails this humble blog, if you do not inform your insurance company for 2 months in advance that it does not intend to renew your insurance company may claim even legally do so.

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This articulated is not new, the novelty is that companies begin to enforce the implementation of this article systematically. So far it seemed that prevailed a sort of nonaggression pact between companies, intermediaries and customers. The thing was obvious, much of the new business comes from competition if we strict application of the rule will capture much less business.

It turns out that in the times in which we live is no longer so easy attracting new customers and this increased cancellation of existing business is added which causes the closing of ranks in trying to lose as little business as possible, the profitability of a policy is closely linked to its duration.

At this point, it is when companies have strict and demanding receipts returned relying on many cases, in specialized external companies in defaults.

¿ Is their right companies? Undoubtedly, the article is very clear with regard to timing, but guests should know that they also protect them other actions that can release this extension

We refer to the one hand Article 15, 2nd paragraph, LCS that says the company has a period of six months from the due date to claim the receipt, to do so the contract is extinguished.
Also, although with certain nuances, it can be argued that if between communication low by the customer (even if it was made after this date but before maturity) the Company does not object within a reasonable period, the contract could be interpreted as solved since the silence of Insurer would tacit acceptance of the low.
Another supporting argument is related to whether a unilateral significantly from one of the essential elements of the insurance contract (amendment Article 8 LCS: premium, sum insured, mediator, risk, etc.), it could not be held a case of extending the insurance contract but as a true renewal thereof, on the one hand, must be in writing to the Policyholder ( Article 5 LCS ) and on the other, the provision requires the consent of both parties for validity (articles 1203.1256, 1261.1 Civil Code) .In this case, would not apply articles 15 and 22 LCS to represent novation a new contract and not the extension of a previous contract to the same conditions.

This repository ( developed by the legal department Estabrook ) can help clients in their defense in case of return receipt out of timelines, but our recommendation to clients and to avoid major problems is to apply a preventive cancellation more than 60 days advance that will release them from their contract and enable them to explore new alternatives, approach your trusted mediator that surely know complete this information.