by sleepyshepherd » Wed May 01, 2013 03:22 pm
There are too many details to explain to really get answers to my questions, but the time to act is now in this matter. Last April 2012, my son changed car insurance companies to get a better rate. His policy was one that covers what the law here in Oregon demands. Five months later my son got pulled over and was cited for DWS, his car was towed and he was given a court date. He contacted his insurance company to find out what was going on but got the runaround up to the day he had to appear in court, the court ordered that he carry an SR22 for three years, fined him $620 and ordered him to pay for and attend some traffic class, he had to pay to get his license reinstated as well. After that incident the insurance company apologized to my son but assured him that everything was straightened out (don't ask me why he let it go at that but he did).
In February, 2013 my son received a letter from the DMV notifying him that his license would be suspended the following month in March because his insurance company reported that his insurance policy had been cancelled or not renewed - note, he has been paying his premium by direct withdrawal from his bank account by the insurance company since February 2012. In the meantime and quite in left field,my daughter gets a voicemail from my son's insurance company asking her if she received her new policy information and if she had any questions... my daughter does not have insurance because her car was sold in June 2012. Long story, somehow the insurance company had been insuring my daughter's car and taking the premiums out of my son's account to pay for it! Yes she had used that insurance company 2009-2011 but not in 2012-2013, even so she never had her premiums deducted from my son's account. So my son's license was suspended again and for two solid months my son could not get any answers from the insurance company except that they were looking into it and they also wanted proof that my daughter's car had been sold and was not still in her use (irrelevant I thought, until everything has begun to unfold).
The insurance company told my son that they could not do anything without a statement from my daughter asking them to cancel the policy on her car and the date that it had been sold, and against my strong advice he had her do this so that he could get his stuff straightened out. He was suspended, he was on the verge of eviction because he could not get to work, he was facing penalties with the courts for non-compliance and so he gave them what they wanted.
So for an entire year my son drove around thinking he was insured. The insurance company (after they got the cancellation notice) simply wrote my son a letter stating that premiums paid to the wrong policy that remains after the correct cancellation was processed has been moved to his now active policy with them dated June 2013. When my son asked the agent for a statement from them detailing his account history having been paid and current throughout the time in question April 2012-April 2013 to take to the DMV to show proof that he had not lapsed and had been in compliance with his SR22 insurance coverage, the insurance wrote what they call a record of experience that consisted of one sentence "Our records show that you have been insured with us for the dates below April 2012-April 2013.
They issued him an SR22 effective April 2013 and wrote him a new insurance policy, new number and all. They are only giving him credit for payments he made to them for whatever is refundable from the date of my daughter requesting that they cancel her policy with them. They are not offering to pay any fines he incurred, they did not pay to have his license reinstated, and they have not notified the court (although requested to do so by my son) by mail or otherwise that my son had financial responsibility at all times and that the SR22 should be terminated. Nevermind the fines her incurred from the court and the time he lost from work etc.
My son is making me his attorney-in-fact through a general power of attorney so that I can get some answers from this company. The company agent who has been dealing with my son about this sent him an email the other day suggesting that he sue the former insurance agent that is responsible for the mix-up, but I say that they are responsible too because they deducted that money from my son's account and applied it to an entirely different policy for a year and also reported to the DMV that he no longer had an SR22 on file, months after he had been paying the premium!
What can we do? What damages do you suggest we demand? Shouldn't the insurance company give him the years worth of insurance that he paid for instead of discounting his new policy with whatever is left from my daughter's cancellation date? I plan to report this to the Oregon Department of Insurance, but what kind of letter or communication should I send the insurance company and what damages are reasonable to ask for?
Thank you for anything you can advise.
In February, 2013 my son received a letter from the DMV notifying him that his license would be suspended the following month in March because his insurance company reported that his insurance policy had been cancelled or not renewed - note, he has been paying his premium by direct withdrawal from his bank account by the insurance company since February 2012. In the meantime and quite in left field,my daughter gets a voicemail from my son's insurance company asking her if she received her new policy information and if she had any questions... my daughter does not have insurance because her car was sold in June 2012. Long story, somehow the insurance company had been insuring my daughter's car and taking the premiums out of my son's account to pay for it! Yes she had used that insurance company 2009-2011 but not in 2012-2013, even so she never had her premiums deducted from my son's account. So my son's license was suspended again and for two solid months my son could not get any answers from the insurance company except that they were looking into it and they also wanted proof that my daughter's car had been sold and was not still in her use (irrelevant I thought, until everything has begun to unfold).
The insurance company told my son that they could not do anything without a statement from my daughter asking them to cancel the policy on her car and the date that it had been sold, and against my strong advice he had her do this so that he could get his stuff straightened out. He was suspended, he was on the verge of eviction because he could not get to work, he was facing penalties with the courts for non-compliance and so he gave them what they wanted.
So for an entire year my son drove around thinking he was insured. The insurance company (after they got the cancellation notice) simply wrote my son a letter stating that premiums paid to the wrong policy that remains after the correct cancellation was processed has been moved to his now active policy with them dated June 2013. When my son asked the agent for a statement from them detailing his account history having been paid and current throughout the time in question April 2012-April 2013 to take to the DMV to show proof that he had not lapsed and had been in compliance with his SR22 insurance coverage, the insurance wrote what they call a record of experience that consisted of one sentence "Our records show that you have been insured with us for the dates below April 2012-April 2013.
They issued him an SR22 effective April 2013 and wrote him a new insurance policy, new number and all. They are only giving him credit for payments he made to them for whatever is refundable from the date of my daughter requesting that they cancel her policy with them. They are not offering to pay any fines he incurred, they did not pay to have his license reinstated, and they have not notified the court (although requested to do so by my son) by mail or otherwise that my son had financial responsibility at all times and that the SR22 should be terminated. Nevermind the fines her incurred from the court and the time he lost from work etc.
My son is making me his attorney-in-fact through a general power of attorney so that I can get some answers from this company. The company agent who has been dealing with my son about this sent him an email the other day suggesting that he sue the former insurance agent that is responsible for the mix-up, but I say that they are responsible too because they deducted that money from my son's account and applied it to an entirely different policy for a year and also reported to the DMV that he no longer had an SR22 on file, months after he had been paying the premium!
What can we do? What damages do you suggest we demand? Shouldn't the insurance company give him the years worth of insurance that he paid for instead of discounting his new policy with whatever is left from my daughter's cancellation date? I plan to report this to the Oregon Department of Insurance, but what kind of letter or communication should I send the insurance company and what damages are reasonable to ask for?
Thank you for anything you can advise.
Posted: Thu May 02, 2013 09:43 am Post Subject:
Actually, your son's insurance company played the foul here. They shouldn't have withdrawn any money for a totally different insurance policy.
Be courteous but firm while drafting your complaint letter. In your letter you should mention the following points:
• The exact reason for sending the letter.
• A straightforward request for compensation regarding all the unnecessary costs your son had to bear for no fault of his.
• A particular response deadline.
Also include in the letter mentioning that you’ll be bound to take the matter to your state insurance regulator.
Posted: Tue May 07, 2013 01:08 pm Post Subject: Wrong Policy
So it does not matter that the insurance coverage somehow went towards my daughter's car; my son paid the premiums on a policy that he contracted with the insurance company, credit for the dates 04/2012-04/2013 in insurance coverage is reasonable to ask for correct?
What about the letter the insurance company had my son get my daughter to write stating that she wanted the insurance on her car cancelled? I think they might have done that to cover their asses. Also, in the last email from them, they expressed empathy for my son's situation and suggested that he sue the agent who no longer works for them; as well as reporting him to the OR. Department of Insurance, suggesting that it was his foul-up. They closed the letter expressing the fact that they are glad that they were able to help with this matter. Even if the insurance agent somehow messed up, the company was the entity that took the direct payments from the bank account and notified the DMV of cancelled/nonrenewal of SR22, so it it their fault as well correct? What is a reasonable deadline date, 14 or 30 days? Thank you for your reply
Posted: Wed May 08, 2013 01:07 pm Post Subject:
As far as I know, your son is entitled to get a pro-rated insurance premium refund. However, if your son's insurance agreement doesn't specify about this refund, then he wont get that.
Considering that your son's insurance provides him with a refund, then in that case your son has to send a written request to the insurer asking them to cancel the policy and credit the paid amount back into his account.
Yes, the insurance company is trying to duck their responsibility for all the mess created by them and make the insurance agent their scapegoat!
Here, it is best to work with an insurance attorney and let him handle the case, before it gets too murkier to get resolved amicably.
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