Frequently Asked Questions
• A. MWUA policies may be cancelled on a pro-rata basis for the following reasons. 1. Coverage is replaced by another Company. Satisfactory evidence must be provided to MWUA 2. The property is sold. Satisfactory evidence must be provided to MWUA 3. There is a total loss of the property. 4. MWUA determines that the property is no longer insurable under the Rules and Procedures of MWUA. B. The effective date of mid-term cancellations will in no event be more than one year prior to receipt of proper written cancellation request along with satisfactory evidence. C. Cancellation for any reason other than reasons stated above shall result in a fully earned, non-refundable premium to MWUA.
MWUA does have an optional 4 pay plan. MWUA does not accept credit card payments, but premium can be paid by insured checking or savings ACH transfer or agency trust account ACH transfer. Premium financing does not work well for MWUA policies since the fully earned premium rule prevents return of unearned premium for most policy cancellation reasons including non-payment. The fully earned premium rule discourages most premium finance companies from advancing payments on MWUA policies. The 4 exceptions to the fully earned premium rule are: proof of property sold, proof of duplicate coverage placed with wind and hail coverage, total loss of covered property, or MWUA underwriting cancellations other than for non-payment of premium.
Upon receipt of all necessary data, and if the location is considered to be acceptable, coverage is bound effective at 12:01 a.m., Standard Time, on the day following the date proper data was received, or effective the date mailed, if sent by certified mail, unless the application stipulates a later date.