by Guest » Sat Apr 04, 2009 09:44 pm
I recently faxed in a policy cancellation request for my auto insurance. Shortly after, I received a voicemail from my insurance agent stating that they did receive my cancellation request but wanted me to call them back before they cancel it to see if there is anything they can do to keep my business.
The request was faxed in a few days prior to the requested cancellation date. It is now a couple days after the requested cancellation date and from what I can tell, the policy is still active.
The request was faxed in a few days prior to the requested cancellation date. It is now a couple days after the requested cancellation date and from what I can tell, the policy is still active.
Posted: Sun Apr 05, 2009 12:51 pm Post Subject:
it can be if the cancellatrion request is filed after the freelook period of the insurance policy.Free look period is mentioned in the policy docs. I think if you do not have the policy docs just visit the insurer's website and confirm the free look period. Free look period for auto insurance i am not sure about it. :wink:
Posted: Sun Apr 05, 2009 01:11 pm Post Subject:
I do not quite understand what the free look period is. Does this give the insurance company your are cancelling a chance to look over your policy and seee what they can do to keep your business?
Posted: Sun Apr 05, 2009 01:59 pm Post Subject:
In life insurance and annuities contracts, there is also a provision for a Free Look Period that allows the policyholder the right to cancel the contract within the first 10 days after purchase.
i doubt whether any consumer does have the some right in auto insurance or not but in life insurance customer does have the right to cancel the deal within first 10 days of the policy issuance. :wink:
Posted: Sun Apr 05, 2009 03:02 pm Post Subject:
I have had the policy for around 3 years now. My last renewal was 4 months ago and it says you can cancel anytime 60 days after renewing by faxing in a cancellation request.
I'm just wondering if the voicemail asking me to call them to give them a chance to keep my business is a legit reason to delay cancelling my policy and continue to charge me. They weren't interested in negotiating before and I already have new insurance.
Posted: Mon Apr 06, 2009 03:45 am Post Subject:
Automobile policies don't have free-look periods. Those are pretty much related to life, health and annuity products only. Also, don't get too attached to a "10-day" period. Free-looks have different time periods depending on the type of policy.
Chances are that there's simply a lag in the paperwork. If you don't receive cancellation papers from the insurer in a week or so, then give your agent another call. I can appreciate your agent wanting to retain your business, but I can also appreciate timely processing of paperwork!
InsTeacher 8)
Posted: Mon Apr 06, 2009 04:59 am Post Subject:
But Ins Teacher the OP said he/she already has purchased another auto policy from another carrier. Is that going to be a problem if the previous policy has not been canceled yet?
Op have you tried calling the insurance agent once more to see if they have made any progress with the paper works?
Posted: Tue Apr 07, 2009 05:55 am Post Subject:
My last renewal was 4 months ago and it says you can cancel anytime 60 days after renewing by faxing in a cancellation request.
This means that you have the right to cancel within 60 days of your renewal date. You said that you complied with this requirement, if I remember right. Insurance companies have the right to charge premium for any coverage provided, but that shoudn't be the case here past the point of your requested cancelation. Assuming the coverage was properly canceled, there shouldn't be premium charges after that point, period.
If the agent screwed up by not canceling the policy properly, he better get on the phone with his underwriter and beg forgiveness and ask that the policy be canceled retroactively to the customer's cancel request date. If the underwriter won't do it, frankly- the agent should be on the hook for the charges and needs to get his (fill in the blank) together.
I have rarely seen this be a problem. Normally, if there is a problem with the cancelation on the company's side, a phone call from the producer usually fixes things up easily. I would also suggest your agent put in a call to billing ( most agents know people in billing) to make sure they know what's up, because they're the ones who pull the money strings in the computer.
Keep us informed.
InsTeacher 8)
Posted: Tue Apr 07, 2009 07:45 am Post Subject:
Hi,
I do not quite understand what the free look period is.
IMO the free-look period is a period of time during which you may experience the benefits of a commercial product or service for which you're not charged. Some companies would offer you a period of time within which you may call for a refund if you change your mind.
ArindamSenIndies
Posted: Tue Apr 07, 2009 08:58 pm Post Subject:
Guest,
Just follow up with your agent and make sure he cancels it correctly, effective the date you requested on your original written request. The agent can not refuse your cancellation.
It sounds like the agent delayed processing the request because he wants to try to talk you out of your decision. I don't blame him! However, unless YOU change your mind, then you have already sent in the written request, and he will be required to honor it. You have no obligation to pay for coverage after the effective date of your written cancellation request.
To get to the technical jargon, an insurance policy is what is called a "unilateral contract" ("one-sided" contract), which means that the only party required to perform is the insurance company. There are very few reasons for which the company can cancel your coverage. However, YOU have the right to cancel at any time. (That is what makes it one-sided.)
There is no "free look" period that applies here. The only "free look" period on an auto insurance policy is on the company's side; when the agent binds a new policy, the underwriter has an opportunity to review the policy (usually 60 days) and cancel it for any reason during that period. After the free look period is over, then the company can only cancel for a very short list of reasons. YOU can cancel at any time and for any reason, however.
Posted: Wed Apr 08, 2009 04:45 am Post Subject:
Christy P said:
To get to the technical jargon, an insurance policy is what is called a "unilateral contract..."
and
the only party required to perform is the insurance company.
and
The only "free look" period on an auto insurance policy is on the company's side; when the agent binds a new policy, the underwriter has an opportunity to review the policy (usually 60 days) and cancel it for any reason during that period.
I gotta say, I'm impressed. This is the "back-end" side of the business, and not many people are aware of this kind of stuff. You're either a recent licensee (I say that because this is commonly part of license training) or you know your biz. I think it's the latter.
Contract law is actually pretty simple when you get down to it. There are a few basics that govern all contracts, one of which is the unilateral basis of insurance contracts. Since the insurer was the party that drew up the contract and the applicant/insured had zero input as to what was contained or the language within the contract, the only promise made in an insurance policy is by the insurer. Therefore, only the insurer can be sued for failure to perform. The insured cannot be sued for performance breach as he never made any legal promises, so there can't be a breach!
Most policyholders don't understand this concept, and there's a lot of law behind it. Right with this is the "law of strict construction" which basically says that any ambiguities in these contracts ("adhesive"contracts) are ruled against the insurer in court. What's an adhesive contract?
A contract of adhesion is a contract that is not subject to bargaining or negotiation and is offered to the buyer on a "take it or leave it" basis. The language cannot be altered by the agent or the applicant, and must be accepted by the applicant as issued. If the applicant doesn't want it? They "leave it" and find another policy somewhere else. I love this one.
I've had numerous applicants want to negotiate the rate or the coverage. It's especially fun in commercial P&C and life insurance. Quote some high-end life insurance policy for say, $7500 a month. Send in the app, the underwriter gets the medical info, issues but rates up the policy to $9,000 a month. Now you have to tell your client what's up. Usually it's indignation, then disbelief, then the negotiating sets in. "That's $1,500 a month higher than what you quoted me. That's $18,000 a year times 10 years! (10-pay life plan) That's...that's...that's...$180,000 more IF I DON'T DIE." :!: :!: Tell you what, I'll split the difference with you. Give ya $8250 a month, right down the middle. But you gotta give me something..."
This has happened to me, and more than once. You patiently explain to the customer that the only real option you have to keep him at the quoted premium amount is to lower the amount of coverage (bad idea) or change the premium payment mode. Patience...
InsTeacher 8)
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