Can a life insurance drop you without your knowledge?

Answer 1

State laws regulate the policies of all insurance companies. The law would stipulate how notice is given but it is also in the policy. Individual life insurance policies cannot be cancelled for any other reason than non-payment after the "non-contestible" period which is usually 2 years. During this period the policy can be cancelled by the company only for misrepresentation (lying) on the application or suicide and done at the death of an insured but is very rare. I've only had one of these in my career and all premiums paid are returned with interest. After 2 years they pay even for suicide cases or lying on the application. In the case of non-payment, at least 2 notices are sent to the insured before cancellation with plenty of notice and at least 2-3 chances to reinstate the policy after cancellation. It costs insurance companies to issue policies and they would much rather retain the policyholders than issue new ones. The only cases of someone truly not getting notification may be if they move or change their address forgot to notify the company. Even in these cases the Agent would make every effort to contact the policyholder as it effects commissions, bonuses, and is just good business. As a matter of full disclosure, I own and operate a small Independent Insurance Agency in Georgia and have for 22 years. I also was an agent for a direct writer insurance company for 3 years prior.