by txagt » Wed Nov 16, 2011 11:29 pm
Back in 2004 I wrote a life policy on a lady who wanted to name her two nephews as equal beneficiaries. As usual she did not have all the info to do specifically their date of birth and social security numbers. We submitted the application and prior to the policy being issued the client forwarded the necessary information and we got her to initial the changes to the initial application and that information was forward to the life company - again, all prior to policy being issued.
Now 7 years later the life carrier is saying we don't see a change of beneficary form, why? I tell them because at the time the changes were made, there was no policy in force so we added the changes to the original application and the client initialed and dated it, we sent it in.
The company made the change of payment mode that was an additional change made at the same time the beneficiary information was updated, they made that change just didn't update the beneficiary designation.
We haven't heard anything back once we faxed the form showing client's changes and initials on both the payment mode and beneficiary information. Was I correct that a change of beneficiary form was not the only means to make the change at the time the change was made and can they refuse to acknowledge the changes despite their obvious error?
This company makes mistakes all the time so this is not unusual, what is usual is they are looking for someone else to take the blame - like me, but it's not happening, I had my documents in order, they just screwed up - AGAIN!
Ideas, comments???
Now 7 years later the life carrier is saying we don't see a change of beneficary form, why? I tell them because at the time the changes were made, there was no policy in force so we added the changes to the original application and the client initialed and dated it, we sent it in.
The company made the change of payment mode that was an additional change made at the same time the beneficiary information was updated, they made that change just didn't update the beneficiary designation.
We haven't heard anything back once we faxed the form showing client's changes and initials on both the payment mode and beneficiary information. Was I correct that a change of beneficiary form was not the only means to make the change at the time the change was made and can they refuse to acknowledge the changes despite their obvious error?
This company makes mistakes all the time so this is not unusual, what is usual is they are looking for someone else to take the blame - like me, but it's not happening, I had my documents in order, they just screwed up - AGAIN!
Ideas, comments???
Posted: Thu Nov 17, 2011 03:23 am Post Subject:
Sorry, txaqt, but it looks like you screwed up. You had a responsibility to make sure that the policy was issued correctly. Why didn't you do so?
If you do things in an unconventional manner, you should actually expect the insurance to screw up.
Posted: Thu Nov 17, 2011 03:49 am Post Subject: LIfe beneficiary
That's hard to do since the company will not disclose to us, the agent of record on the policy, who the designated beneficiaries are - don't you think?
Posted: Thu Nov 17, 2011 03:51 am Post Subject: By the way....
It is a conventional method of making edits to a contract to have all parties initial and date changes. Had the modifications been requested AFTER the policy was issued a beneficiary change form would have been accurate, however it's not possible to do a change of beneficiary form on a policy with this company anyway until it has been issued. Check your book on contract law - handwritten edits are common and accepted. Thanks for your infinite wisdom though there's always one in the crowd whatever the crowd.
Posted: Thu Nov 17, 2011 04:16 am Post Subject:
The point is that because this change occurred before the policy was issued, the change would show up in the original policy. When you delivered the policy, it was your responsibility to see if the change was made. You failed in your duty to do this.
Posted: Thu Nov 17, 2011 04:18 am Post Subject: Oh holier than thou...
Has the information been included in the policy that got issued we could and would have done just that - it wasn't. Wow you are such a genius, what would the world be without folks like you that are so superior. Thanks for sharing you immense intelligence with us all beneath you.
Posted: Thu Nov 17, 2011 05:06 am Post Subject:
As usual she did not have all the info to do specifically their date of birth and social security numbers. We submitted the application . . . .
I assume by this, that you submitted the application with no beneficiary listed. That was your first mistake. So what if you don't have Social Security Numbers? Names and relationships to the insured are better than no names. The insurance company will sort it out like they've been doing for a zillion years.
Now 7 years later . . . .
Is the insured still alive? Does the owner still want the same two individuals to be the beneficiaries?
If the answer to both questions is YES, then no harm, no foul. The issue is moot. Simply have the policyowner complete the form and submit it and everything will be as intended.
This is not about deciding whose fault it is. It is about making things right ASAP!!
To keep fooling around, pointing fingers at the insurance company, is wasting precious time -- an insured could die, and the money could end up in someone else's hands other than the intended beneficiaries. For that, your E&O insurance carrier would not be happy, but they would pay the claim . . . and probably cancel your coverage. (Or are you too genius not to need E&O?)
I wouldn't blame them. Thank your Creator for not allowing someone to die with the possibility that no beneficiary was listed as the result of your negligence.
Posted: Thu Nov 17, 2011 05:12 am Post Subject:
Wow you are such a genius, what would the world be without folks like you that are so superior.
Worse off than it is now.
Posted: Tue Nov 22, 2011 07:42 am Post Subject:
This doesn't sound like a very difficult situation to resolve.
1. You should always check the policy and the attached application. That will show you who was the beneficiary at time of issue.
2. if you still talk to your client, just do a change of beneficiary form. You do still talk to your clients after 7 years, right?
Posted: Sun Nov 27, 2011 05:39 am Post Subject:
A letter dated and signed by the policy owner should have worked just fine.
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