Judge Rules Underage Drinking Can’t Cause Insurance Cancellation
PA Court Panel Rules Underage Drinking Can Not Cause Auto Insurance Cancellation
State Farm Auto Insurance violated Pennsylvania law by canceling the auto insurance policy of a Pennsylvania driver because her license was suspended for an underage drinking conviction, a Commonwealth Court panel ruled. The PA insurance commissioner, Theresa D. Miller, ruled in the young lady’s favor, finding that state law bars insurers from voiding auto policies because of license suspensions stemming from underage drinking convictions.
It was interesting to find out that the insurance commission has a rule in place for this specific situation. The Pennlive.com article notes the state bars insurance companies from sanctioning or cancelling the insurance policy of someone for simply violating the underage alcohol laws, even if that violation leads to a license suspension. A first offence underage alcohol violation leads to a 90 day license suspension, with increased suspension up to two years per incident for multiple violations.
Read more about Alanna Dougherty and her insurance cancellation here;
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