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Maybe in Canada but here in the states such action would call for a law suit as the insurance carrier would have absolutely no justification for such an action.
I tried to find the actual case without any luck but there was a court case where an insurance company canceled a persons policy when the client ask what would happen if their "covered" daughter had an accident driving their car. They were concerned if the rate would increase. The court ruled in favor of the client and the insurance company was required to reinstate the policy. Of course within days the client turned around and canceled the policy. Not 100% if the insurance was State Farm or Allstate. I do recall it had the word state in it's name.
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