Insurance companies in Ohio can’t just cancel your policy without reason. If you’re facing a rescission, it means the insurer wants to void your policy as if it did not exist. This only happens under specific circumstances. Understanding when and how this can occur helps you stay protected.
Reasons an insurer can rescind a policy
In Ohio, rescission usually happens because of false statements or omissions in your insurance application. If you left out important information or misrepresented facts, the insurer may argue they wouldn’t have issued the policy at all. This is more common in health and life insurance but can also affect auto or property policies.
Ohio law allows rescission only when the misstatement is material. That means the error must significantly impact the risk the insurer assumed. Something minor, like a typo in your address, wouldn’t qualify. But failing to disclose a prior medical condition or accident could.
Time limits for rescission actions
Ohio insurers must act quickly. Most policies include a two-year contestability period. After that, the insurer can’t rescind the policy unless you committed fraud. So, if your policy has been active for more than two years and you made an honest mistake, you’re generally protected.
This two-year window gives both sides some peace of mind. It also encourages insurers to review applications early and thoroughly.
Your rights during a rescission dispute
If your insurer attempts rescission, you have the right to respond. The company must notify you in writing and explain the reasons for this. You can present evidence or clarify any misunderstandings. If you believe the rescission is unfair, you can challenge it through the state insurance department or court.
Keep records of your application and all communication. That way, if issues arise, you’ll have what you need to defend your position.
The most reliable way to avoid rescission is honesty. Answer every application question completely and truthfully. Even if something seems unimportant, disclose it. A few extra minutes during the application process could save you from bigger problems later.
