Got a rental property. Had insurance policy which wasn't renewed with the carrier. Agent gave me new policy with property coverage and liability. I signed paperwork, gave the agent a check and filled out information sheet for the new insurance carrier. Carrier would not write the policy since I had a Section 8 tenant. Agent found another carrier for almost double the premium. So instead, I went to a different agent and got a better policy.
All this occurs before existing policy expires. I call the original agent back today and say I don't want the policy they offered at the higher price (I never signed for it) and please send me my check back. She says I'll send you the check for the portion of the property coverage but not for the liability coverage. ($600) since the liability was a separate policy. I say, I wasn't aware they were two separate policies and I don't want the liability policy anymore so I want to cancel it. She says come in and sign a cancellation notice. I say ok. She says, even though I sign the cancellation they won't refund the money. I say why not, because the policy has not gone into effect yet. She says tough luck, no refund. I can't see how that is legally possible. I get nothing from anyone and they get $600. Anyone more familiar with insurance contracts and law know anything about this that would justify me paying $600 for nothing?

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

As a regulated industry in your state, your best bet to start out with is to report the matter to the insurance commisioner's office.

Yep, I just talked to them. Looks like I'm stuck with that liability policy if the contract says 'fully earned' on what I signed. Even if I cancel it, I won't get my money back. Seems goofy to me but apparently that's the law in Colorado. No reason to cancel it then. Lesson learned.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

Sad sad situations out there. I really cannot think of anyone or organization I really both distrust and dislike even close to what I feel about insurance companies.

The secretary from the insurance company just called back. Now they say they are not sure whether they will refund my money or not. She is going to call me back. The issue is that the policy never started.
I can understand the situation if the policy never started but if it was canceled before it began then I would get absolutely no consideration for my $600. I thought it was basic to a contract that there had to be some consideration. Maybe not.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

Kick all tires before signing on the dotted line! As you said, lesson learned.