Can an Insurance Company cancel the policy for any reason it chooses?
Usually, once a policy is issued, as long as the premiums are paid on time the company cannot cancel the policy except for reasons specified in the policy itself. Insurance regulations usually limit what a company can include in the “cancellation” provisions of its policies. Typically, policies will be subject to cancellation only for failure to make required premium payments or for some type of serious misrepresentation or fraud by the insured.
