The last I read at Kelly's father's site was that USAA had informed Kelly's wife that they would release half of her funds in her bank account. My guess is they want to make sure their home insurance and car insurance policy premiums were up to date.
Here is another question. Say they had paid their year premium on their home and car. Then USAA cancels their insurance before the year is up. Wouldn't USSA pro-rate and issue the Stewart family a check for months they paid for but didn't get to use because they were not insured?
You would need to see the full homeowners & auto policies to determine the legal requirements in their state for mid-term cancels or non-renewal. Usually, when they are getting off what they think is a bad risk,they will just non-renew it. When that happens they must send notice in advance of the expiration in compliance with state laws. In some states, when a policy is new business, they can cancel within a certain period of time, like 60 days or so, pretty much for any reason they choose. They still must give notice. If the new business has been in force past that initial period, the rules for mid-term cancellation are usually more stringent. Mid-term cancellations are uncommon (other than for lack of payment). Mid-term cancellations mean something more serious has happened, such as fraud or material misrepresentation. I have never worked at a bank, but nothing revealed makes any sense regarding their bank account. Yup, probably nothing they can do about the insurance & USAA is going to be stubborn about that part unless Kelly gets the conviction overturned or a new trial.
The bank part is upsetting. We opened a bank account with them when they started the bank in the 1980s & have NEVER had a problem. In fact over the years I have never hesitated to recommend the bank. To think they can get away with freezing a bank account based on what an insurance underwriter says is damn chilling, especially considering the attitudes of some underwriters. It makes me rethink everything and I come back to the old saying that it is not wise to put all of your eggs in one basket. You can be sure I will be keeping an eye on this story.