Do insurance companies drop/cancel your policy if youhave a lawsuit(premise liability) or demand letter and you havent report it to them? What are some reasons of why a insurance will drop you? Im talking about Home Insurance.

My home insurance canceled for nonpayment because bank froze my account at the same time I processed my payment and I did not know till it was to late and my payment was rejected. I took care of the bank problem and my account is unfrozen and the cancelation letter states that the cancelation takes effect June 24 at 12:01 Am. If I call them and explain what happened monday morning do you think they will reinstate the policy if I make the payment again and it clears my bank this time?

My sister is 6 months pregnant and just found out from her work today that her health care insurance is going to be cancelled this week because she is not making enough hours for her to keep her coverage. Is there anyway around this? Or any suggestions? She is married but her husband cannot add her to his coverage until enrollment period which is after her due date. He also makes to much to have medicade.