by Guest » Fri Apr 24, 2009 10:39 pm
Our coverage with State Farm lapsed (we moved and it looks like our renewal wasn't forwarded correctly), and we were in an accident, the other insurance company is coming after us for the whole amount of the claim. Do individual agents have any leeway to negotiate "retroactive coverage" (or even partial coverage), or are their hands completely tied by State Farm? I'm going to speak to my agent, and I want to know beforehand (if he says they can't do anything) if he's just "playing hardball" or if he truthfully can't do a thing. Thanks for any info!
Posted: Sat Apr 25, 2009 06:11 am Post Subject:
Hi Guest, you may receive retroactive coverage only if you agree to reinstate the policy and pay the premiums of those months. Therefore, you first need to find out whether you are allowed to reinstate the policy or nor. You may inquire this with your agent.
However, insurer may ask you to sign a declaration stating that you have no claim for the time the policy was ineffective, in which case you are unlikely to receive coverage even if you pay the premiums.
~Jeremy
Posted: Sat Apr 25, 2009 06:44 am Post Subject:
See its the responsibility of the insured to stay current with the premium payment. When you have moved out why haven’t you informed the insurer up-front? Or, why haven’t you inquired with the agent when your premiums were due?
I don’t see how being a state farm agent he can get you retroactive coverage. You may negotiate but most likely the insurer is going to deny flat-out. You aren’t eligible to receive coverage for the period you haven’t paid for. Face the truth!
Kelvin
Posted: Mon Apr 27, 2009 04:00 am Post Subject:
The agent has no room ro negotiate. He is a messenger for State Farm.
Posted: Mon Apr 27, 2009 10:18 pm Post Subject:
That's what I wanted to know - thanks!
Posted: Wed Oct 06, 2010 05:22 am Post Subject: auto
Since your coverage lapsed , the claimant can come after you. Yes, agents or claim rep's have leeway to negotiate.If a lawyer is brought in that's another matter and you will end up payiing what their lawyer gets them
Posted: Wed Oct 06, 2010 05:52 am Post Subject:
Wow... you just replied to a post that is over a year old. :(
Posted: Wed Oct 06, 2010 09:29 am Post Subject:
agents . . . have leeway to negotiate
Aside from the fact that you're late to post as tcope points out, you're also wrong.
Neither agents of State Farm nor of any other insurance company have any authority to "negotiate" anything when it comes to a contract of insurance -- not the coverage or the amount of a claim. And most certainly they cannot "negotiate" the kind of "retroactive" coverage as the OP inquired about.
The only thing an agent can do is take the application and the check for the initial premium and send it to the company. They may have authority to issue a binder, obligating the insurer to cover any losses before it issues a policy or declines the risk, but that it not "negotiating" anything.
No one can obligate the insurance company to pay a claim that already occurred, except perhaps the President of the insurance company, and even he couldn't do that without the authorization of the board of directors, who would probably never agree to it.
Claims adjusters have different authority when it comes to negotiating a claim, but even they do not have the authority to reinstate coverage that has lapsed and the vehicle owner was subsequently involved in a collision.
As for lawyers . . . phooey!
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