msmith1199 wrote:
Here's how they police it, when you get in an accident and have a big claim and insurance adjuster is going to come interview you and then you're going to sign a statement telling him or her everything you said is true. That statement will be signed under penalty of perjury. If you lie you've committed a felony. Is it worth the risk?
If this is true (which in 21 yrs. of P&C Insurance sales I have never heard of happening), the most they could do is collect the unpaid premium. The only way a Ins. Co. can refuse to pay a claim for their Insured if the Policy is inforce at the time of the claim is if the named peril is excluded.