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Dennis & Susan Durrell v. American Modern Home Insurance Company

Docket No. INS-08-2028
Decision Issued: April 30, 2008

The insureds requested a hearing regarding the cancellation of their mobile homeowners policy relating to an alleged significant change in the risk. After the hearing was scheduled, the company issued a “Rescinded Cancellation Notice” to the insureds, which advised them to disregard the recent cancellation notice.

Although the company through its counsel indicated to the Bureau this was a reinstatement pending the outcome of the hearing, the Bureau finds it to be a rescinder of the cancellation, as it clearly states. If a company issues a reinstatement to comply with the Bureau’s coverage order - that the policy remains in force until the matter is decided – the reinstatement must state that it is conditional pending the outcome of the hearing. An unconditional reinstatement or rescinder, as in this case, voids the pending cancellation.