On May 14 I've opened a "notices" letter. I was surprised to see that it was from a Debt Collector from ACA International. So, I called the given number, (617) 581-1076, on the letter immediately to resolve it. On the phone, they told me that INFINITY was their client whom is seeking the payment of $77.78. I told them that there must have been a mistake. "how could i owe infinity?". So, they told me to resolve it with INFINITY, that they couldn't help me any further.
So, I called INFINITY customer services number (800) 762-1020 to investigate. I gave my name and information for customer services person to pulled up my file; however, it couldn't be found immediately. After several attempts, it was retrieved. Yes, the customer service person confirmed that I do owe $77.78 for non-installment payment. I was shocked and aw that a non-installment payment could became a debt. So, I asked customer services if there is person there who could help me and explain how could a non-installment payment became a debt. So, I was transferred to speak with CHRISTINE SEWELL. Over the phone she said, "I'M THE SENIOR UNDER WRITER!" Then, she stated that on April 04, INFINITY requested an installment payment from my bank.By April 09, my bank notified them that my bank account have no sufficient fund. Then, on April 22, INFINITY sent out a notification (which I dumped in the trash without opening it) about my delinquency in installment payment, and it's the amount they're seeking to retrieve or remedy. I've injected, "I've known of the facts that lead to the delinquent of my installment payment. But could you explain to me how does it became a debt?" CHRISTINE SEWELL said, "FOR THE CONTINUE COVERAGE INFINITY PROVIDED DURING THE ACCOUNT DELINQUENCY!". Huh? My shock and aw deepen about this. So, I again injected, "Why? Doesn't my conduct (not funding my bank account, not responding to any notifications) shown that I do not wanted INFINITY services anymore?" CHRISTINE SEWELL FINALIZED, "BY LAW, INFINITY ARE REQUIRED TO CONTINUE COVERAGE DURING THE DELINQUENCY." My shock and aw deepened further. I exclaimed, "Which law is that? Could tell me the section?" CHRISTINE SEWELL answered was, "I DON'T KNOW! IT'S CALIFORNIA LAW!". So, I asked her how could I find out about "THIS CALIFORNIA LAW or THIS CODE OF LAW?". Her answer again was, "I DON'T KNOW! CHECK WITH THE CALIFORNIA INSURANCE COMMISSIONER!"
So, I did just that. I went to the California Insurance Commissioner website and search for the code of law that could be applicable to this situations. I found no insurance code of california law which mandated infinity to continue coverage during account delinquency. The closest was Chapter 5, section 480-490 (The Premium) and Chapter 10, section 660-669.5 (Cancelation and Failure to renew). Chapter 5 and Chapter 10 would applied to this case because it references to the installment payment and failure to renew:
Chapter 10661. (a) A notice of cancellation of a policy shall be effectiveonly if it is based on one or more of the following reasons: (1) Nonpayment of premium.
Chapter 4
480. An insurer is entitled to payment of the premium as soon asthe subject matter insured is exposed to the peril insured against. 481. (a) Unless the insurance contract otherwise provides, a personinsured is entitled to a return of his or her premium if the policyis canceled, rejected, surrendered, or rescinded, as follows: (1) To the whole premium, if the insurer has not been exposed toany risk of loss. (2) Where the insurance is made for a definite period of time andthe insured surrenders his or her policy, to such proportion of thepremium as corresponds with the unexpired time, after deducting fromthe whole premium any claim for loss or damage under the policy whichhas previously accrued. The provisions of Section 482 apply only tothe expired time. (b) No contract for individual motor vehicle liability orhomeowners' multiple-peril insurance may contain a provision whichmandates that the premium for the policy shall be fully earned uponthe happening of any contingency except the expiration of the policyitself. This subdivision shall not apply to policy fees or membershipfees.
Chapter 10 is very clear that a nonpayment of premium, which what an installment payments are, is an EFFECTIVE CANCELLATION NOTICE. On the other hand, Chapter 4 is not as clear but it spelled out that INFINITY IS ENTITLED OR EARNED A PREMIUM ONCE ITS SUBJECTED TO A RISK OF LOSS (ONCE IT INSURED A POLICY). However, except a cancellation, rejection, submission, and rescission. But Chapter 5;481 (b) is the most pro-founding regulation of them all because it states that INFINITY MAY NOT MANDATED THAT THE PREMIUM ARE FULLY EARNED UNLESS THE POLICY HAVE EXPIRED.
Since my nonpayment is an effective cancellation notice and my policy has not expired, then INFINITY DIDN'T EARNED ANY DOLLARS OF PREMIUM FROM ME.
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