by mhenderson » Thu Dec 03, 2009 01:57 am
I recently initiated a new life insurance policy for my wife and myself to replace an existing policy with another insurer. I did this through the same company that was the agent for the previous policy. The original insurer continued to bill our checking account. Unfortunately, we didn't discover this over billing for 4 months. We contacted the agent and he stated that he asked them to cancel the policy once then new policy began but that they had no record of this cancellation. I am suspecting that forgot to cancel it. Should he reimburse me for the overpayment? Thanks.
Posted: Thu Dec 03, 2009 02:10 am Post Subject:
There are a couple of problems here.
#1) An agent is powerless to "cancel" a policy -- that is the responsibility of the policyowner. Your agent is perhaps not being truthful.
#2) You don't indicate whether the policy has actually been cancelled. You must do that in writing directly with the company. They do not take instructions such as a cancellation over the phone or by email. They probably won't by fax either, but they might.
#3) If you have a claim against the agent, for his "errors and omissions", you can threaten to file it in either small claims court, or with his E&O insurer. But, either way, unless he admits wrongdoing, it will be your word against his, and the judge will have to flip a coin, so to speak.
Unless you have something in writing from the agent, I'm afraid you are out of luck and not likely to collect. And even then, a clause in the life contract will relieve the insurer of any responsibility, because agents do not have the authority to do anything not in their contract with the insurer or not permitted in the life policy itself.
A lesson learned the hard way.
This should be moved to the Life Insurance forum.
Posted: Thu Dec 03, 2009 07:33 am Post Subject:
We contacted the agent and he stated that he asked them to cancel the policy once then new policy began but that they had no record of this cancellation.
Did you send in your cancellation instructions in writing?
If the carrier didn't get notified about the switch, it can't be regarded as their fault.
Posted: Thu Dec 03, 2009 02:25 pm Post Subject:
For a good client who just took a new life insurance policy with my agency. I think I would find a way to make things right or get to the bottom of the confusion. If he did indeed "ask" them...he should have some form of documentation to take back and plead your case(with evidence)
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