by dan1157 » Wed Jan 14, 2009 12:12 am
we recently purchased a life insurance policy and decided to cancel it during our right to review and cancel period. the policy said to notify our agent within the right to review and cancel period and our premium would be refunded. we notified our agent in writing and email, but he never contacted the insurance company to cancel the policy. we have sent the insurance company documentation from our agent indicating he cancelled the policy within the right to review and cancel period. what are our chances of getting our premium refunded?
Posted: Wed Jan 14, 2009 02:12 am Post Subject:
If you can establish the evidence that you had informed your agent in writing within the review period regarding your request for cancellation and refund of premium, insurance company is obliged to accede your request.
You may not get full refund if there are expenses incurred when processing your application for example the insurance compant may have requested you to go for a medical check up and they would have made the payment.
If you applied for an equity linked life insurance policy, the amount of refund is dependent on the investment performance.
Posted: Wed Jan 14, 2009 09:11 am Post Subject:
I agree with Xoseph.If the documents you have sent them establish that you had already notified your agent to cancel your insurance in the free look period or the review period , then you have a good chance of getting your premium refunded .However, it may be a full or partial refund depending on the insurance company's expenses,including medical, to get your policy processed.
Posted: Wed Jan 14, 2009 11:47 am Post Subject:
When a life, health, annuity, disability income or long term care policy is canceled within the free look period the insured receives a 100% refund.
There aren't any deductions because the company incurred expenses to underwrite and issue the policy.
I'm not aware of any state in the USA that doesn't provide for a 100% refund.
Most free look periods are 10, 20 or 30 days depending on the state and contract type and this provision is printed in BOLD print on the front of the insurance contract.
Posted: Wed Jan 14, 2009 11:55 am Post Subject:
I would suggest OP, that if you haven't heard anything from the company within 30 days of your request and proof, that you contact your states dept of insurance..(there will be a website and instructions on filing a complaint)...You are entitled to a full refund.
Posted: Wed Jan 14, 2009 01:40 pm Post Subject:
Just curious - what is the reason for wanting the refund?
Posted: Thu Jan 15, 2009 01:34 pm Post Subject:
They want the refund because they canceled the policy during the 'free look' period. why they canceled the policy, don't know, and really is inmaterial, re: premium refund
Posted: Sat Jan 24, 2009 03:11 am Post Subject:
I agree 100% with Gary. It is called a free look period for a reason and who cares why they wanted to cancel the policy; I am glad they did because what kind of agent jacks their clients around like that.
Posted: Tue Jan 27, 2009 07:14 am Post Subject:
When a life, health, annuity, disability income or long term care policy is canceled within the free look period the insured receives a 100% refund.
Isn't the insurance company entitled to deduct the administrative fees, processing charges from the premium paid by the insured?What if I decide to cancel the plan after the free looking period is over? wouldn't I receive the premium back?
Posted: Tue Jan 27, 2009 12:25 pm Post Subject:
What if I decide to cancel the plan after the free looking period is over? wouldn't I receive the premium back?
Yes, but not all of it - it would be prorated, and then there may be some admin. fees I don't know...also re: admin. fees etc, during the free look, I think that is likely state dependent, in my state, there are none, for any of the policys I've seen, doesn't mean there isn't just the basic ones have no fees such as you've referenced...i'm sure the qualified agents on the site can set us straight on this, they will hopefully pop in shortly.Posted: Tue Jan 27, 2009 05:45 pm Post Subject:
What if I decide to cancel the plan after the free looking period is over?
You would get a refund of the unearned premium, if any.
Meaning if you paid an annual premium of $1,200 and the monthly earned premium is $100 per month, you'd get a refund of $1,100 if you canceled the policy after the first month and the agent would get a commission chargeback.
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