Death benefit denied!!

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PostPosted: Thu Nov 14, 2013 1:35 am   Post subject: Death benefit denied!!  

Asking for my sister. Her husband had an insurance policy that would pay off the house when he died. Well, he died and now the insurer is refusing to pay. "Change" had been made to the policy, his name was marked through and his wife's name was inserted. Is this legal? Wife received "copy" of said change but nothing was signed by either. Is legal action necessary at this point?



Thank you for your time

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PostPosted: Thu Nov 14, 2013 5:21 am   Post subject:   

Several questions arise...



Why the policyholder's name was marked through? Wife's name was inserted as what? Policyholder or beneficiary? When did your sister receive the copy of the change? Was your brother-in-law alive then? We need more and detailed information to reach out to a conclusion. You can obviously take legal steps if there is anything fraudulent.



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PostPosted: Thu Nov 14, 2013 10:07 pm   Post subject: death benefit  

To approve the insurance, husband had to have validation from two doctors stating health...at the time-no issues and the insurance was approved. the bank said that it mailed out an updated letter about 4 years after the insurance was issued. no explanation as to "how" the name was changed. My sister had to ask for a copy of said document to show the actual name change, a straight line was marked through the husbands name and next to it was my sisters name. This 'name change' was not known until she made a claim three weeks after the husband died.

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PostPosted: Fri Nov 15, 2013 12:20 am   Post subject:   

Quote:
"Change" had been made to the policy, his name was marked through and his wife's name was inserted. Is this legal? Wife received "copy" of said change but nothing was signed by either. Is legal action necessary at this point?
and
Quote:
the bank said that it mailed out an updated letter about 4 years after the insurance was issued. no explanation as to "how" the name was changed.


This makes absolutely no sense. Who made the change and when? A major change such as this would have to have someone's initials to document the change. Why would someone apply for life insurance and then switch who the insured is? Sounds very suspicious to me.



I would be very interested in pursuing the investigation into this matter and, if necessary, finding you legal counsel to sue the insurance company if there is a case to be made. Please click on the link below to contact me confidentially so I can have you send me documents to review.



If anything fraudulent has occurred, there will be a large settlement at stake and this needs to be handled properly ASAP.


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PostPosted: Sat Nov 16, 2013 12:16 am   Post subject:   

I'm with Max on this one. We finished a non-payment of benefits case in Rapid City a few months ago and made the beneficiary some money. I'd like to know more about this case and get it with counsel. Don't wait on this one very long; I don't want to have to deal with a potential statute of limitations problem.

www.markcolbert.com



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PostPosted: Wed Nov 20, 2013 12:07 am   Post subject:   

Was this real life insurance or mortgage insurance? Difference being that real life is underwritten at issue, while mortgage insurance is underwritten at death. This is how it happens in Canada, which is why mortgage insurance is not recommended.



I don't see how a name could be marked through, without signatures. I don't see it making a difference, but was it market though by hand?

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PostPosted: Wed Nov 20, 2013 12:26 am   Post subject:   

johng,



In Canada, mortgage insurance is underwritten at death? Do Canadian policies have a little thing called a Contestibility Period? If someone makes premium payments on a Canadian mortgage insurance policy for, let's say, 2 years and 1 day, then dies, the company can deny the claim?



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PostPosted: Wed Nov 20, 2013 12:38 am   Post subject:   

There is no contestability period if you have purchase mortgage life insurance, as you really haven't got life insurance, all you have done is pay premiums for 2 years and 1 day for the hope of getting life insurance. Claims are not denied that often however it does happen.



Lets say for instance you get asked a question on if you have had high blood pressure, you answer no as you don't take medication and have no reason to believe you do. Now if your doctor on the other hand specifies in their report that you had slightly high blood pressure and that it should be checked on next checkup, then the underwriter has cause to deny the claim if death could be linked to high blood pressure.



Another thing of note is that the mortgage specialist is very likely not life licensed, so they can not legally offer any advice.



There are several cons about Canadian mortgage insurance, and I always recommend that people rather take out personal life insurance to cover debts. That being said, mortgage insurance is better than no insurance.



PS, yes there is 2 year contestability period for personal life insurance. My insurance manager had a client who's mortgage claim was denied because he was under then influence when he died via snow mobile accident, on the other hand his personal insurance paid.

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PostPosted: Wed Nov 20, 2013 2:23 am   Post subject:   

Quote:
Another thing of note is that the mortgage specialist is very likely not life licensed,
Based on your comments here and elsewhere, johng, I seriously doubt that you are a licensed life agent, either.



"Mortgage insurance is underwritten at death" LMAO! Hope you aren't an insurance company executive either.


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PostPosted: Wed Nov 20, 2013 2:37 am   Post subject:   

Help me with the difference between Real life insurance and Canadian Mortgage Insurance.



In America, a real life insurance policy pays a benefit to someone when the insured's heart stops beating. And it makes sense that an American mortgage insurance policy pays off a mortgage, or similar financial obligation, when the payers/insured's vital signs fall to zero.



Now, something has to happen - for sake of argument, let's say an application is completed and payment submitted to an insurance company prior to a policy being issued. Once that policy is issued and payments made for let's say 2 years (the usual Contestibility Period) the company cannot deny a claim based on information they failed to get. If you go into my website, you'll see a very similar non-payment of benefits claim Max and I worked on earlier this year.



The company, United of Omaha, denied payment of a claim on a policy that had clearly passed its CP. They claimed, "if we had known the insured was disabled, we wouldn't have issued the policy." To make a long story short: They lost. They wound up paying a great deal more than what they would have paid if they'd just honored their own contract.



Find me a few of these Canadian cases where people made premium payment on a policy that didn't exist. I haven't been to Canada in a few years. Max, want to go to Canada and help me sue a crooked mortgage insurance company? Maybe we can do some fishing.



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PostPosted: Wed Nov 20, 2013 10:23 pm   Post subject:   

Quote:
"Mortgage insurance is underwritten at death" LMAO! Hope you aren't an insurance company executive either.




Its actually not a joke, its quite sad in reality. This is Canadian mortgage insurance, I don't know the intricacies of the USA market as I am not licensed in the USA.



I know "underwritten at death" might seem silly, yet it is 100% true.
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PostPosted: Wed Nov 20, 2013 10:32 pm   Post subject:   

Quote:
Now, something has to happen - for sake of argument, let's say an application is completed and payment submitted to an insurance company prior to a policy being issued. Once that policy is issued and payments made for let's say 2 years (the usual Contestibility Period) the company cannot deny a claim based on information they failed to get. If you go into my website, you'll see a very similar non-payment of benefits claim Max and I worked on earlier this year.





The insurance is not issued as it has not been under written.



Quote:


Find me a few of these Canadian cases where people made premium payment on a policy that didn't exist.





Exactly the policy doesn't exist, all they are doing is paying premiums until its underwritten.



Quote:


I haven't been to Canada in a few years. Max, want to go to Canada and help me sue a crooked mortgage insurance company? Maybe we can do some fishing.




Its not a mortgage insurance company, its the lending institution that is promoting the mortgage insurance. As I mentioned before, the majority are not licensed insurance agents, I would like to say 100% however that is unlikely to be true. No self respecting insurance agent would advise a client to take out this insurance.



The licensed mortgage agent I work with has to inform the client about the mortgage insurance, however she always lets them know that its a stop-gap measure, and she refers them to me.



It seems like the USA and Canadian version are two very different beasts.
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PostPosted: Wed Nov 20, 2013 10:36 pm   Post subject:   

http://www.youtube.com/watch?v=qe61HVGIwUo



About 40 seconds in, its a news story from CBC, a respected new agency. Its a long video, just ignore the beginning as its not about ball room dancing.
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PostPosted: Wed Nov 20, 2013 10:39 pm   Post subject:   

@maxherr, the video above, about 3mins in.

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PostPosted: Thu Nov 21, 2013 1:34 am   Post subject:   

When I tried to download it, I received the following message.



"The uploader has not made this video available in your country."



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