Index | Different Articles | What Is Insurance Revocation?

What Is Insurance Revocation?

Revocation of any kind of insurance comes forth when a policy holder is considered to have violated insurance rules or who is suspected of wrongdoing on the part of the insurance company or the insurance agent. Insurance policies act as a promise of protection and the most important thing insurance companies do is that they protect insurance consumers. But in cases some individuals or entities are found not to follow insurance rules they become subject to enforcement action that results normally in fines, restitution, cease and desist orders, license supervision or a revocation of insurance. For example, motor carriers should not operate without insurance. Whenever a bodily injury, a cargo and property damage occur, certificate of insurance is cancelled during its term for any reasons and is not replaced by another insurance certificate complying with the insurance requirements, a written notice will be given to the holder which will contain a statement that the right to operate under such certificate is suspended with the revocation of the insurance policy. But in case the motor carrier files a satisfactory insurance certificate it will be given a written notice that the operations may be resumed.