All Comers Rule
What Does All Comers Rule Mean?
The all-comers rule refers to a clause in the Insurance Act of Alberta, Canada, which prohibits insurance companies from denying basic insurance coverage to applicants, particularly for liability and accidents.
Insuranceopedia Explains All Comers Rule
The official clause number is Clause 613.1, but industry insiders commonly refer to it as the “all-comers rule.” Essentially, it prohibits any insurance company from denying insurance coverage to individuals in the province of Alberta. The rule applies to the basic liability portion of an auto policy, which in most of North America is the minimum amount of coverage a driver has to carry. Drivers outside Alberta can use this guide to figure out how much liability insurance they need, and check the minimum car insurance requirements by state to see what their own jurisdiction mandates.
There are three exceptions built into the clause:
- Failure to pay: An insurance company can cancel coverage if the agreed-upon payments are not made.
- Applicant still owes: An insurance company can deny coverage to someone who still owes money to another insurance company.
- Misrepresentation: Coverage can be denied if the applicant has lied or failed to disclose important information during the application process.
For high-risk drivers in the US who get turned down by standard carriers, an SR-22 filing is the closest equivalent to the situation the all-comers rule was written to address.