It's all about tradeoffs. Harder retroactive cancellation means it will be more difficult to get a policy. Insurers know people lie. They also know that people have information that they don't. They will become even picker in their underwriting standards. The policy question is whether it is better to have easier standards with regulated retroactive cancellation, or harder standards with guaranteed renewability and a free pass if people withhold material information.

Some policies already have a two year wait until the policy has guaranteed renewability.

• posted by Linda Gorman
• October 25, 2007 @ 12:31 pm
• Permalink

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