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 28, 2009 12:56 am Post Subject:
Gary, when and what are these administrative costs, broker fees blah blah that people are talking about? Just not something we have in the midwest? I've never seen or heard of this :?
Posted: Wed Jan 28, 2009 01:37 am Post Subject:
We don't have such fees here in TX or in the other states, LA, OK, and GA that I am licensed in so it would work exactly as Gary has explained.
Posted: Wed Jan 28, 2009 05:43 am Post Subject:
We operate in 27 states, and I have either researched law or reviewed others' research of law, and there is no state I know of that allows any less than a 100% refund of the premium paid if one is requested within the required right to return, or free look, period.
There is no reason whatsoever required for the refund; it is an unconditional refund provision. The insured simply needs to request his refund in writing (although the "in-writing" part's rarely enforced) to either the agent or the carrier, usually accompanied by a return of the policy, and the insurer will process a full refund.
If the insured cancels after the free-look period, in most states the insurer is allowed to refund unearned premium on a "short-rate" instead of pro-rata basis. This means that the insurer is able to keep a percentage of the unearned premium as a "short-rate cancellation fee." I've seen as high as up to 10%.
If death occurs during the free-look period, the death benefit will be paid. The policy has been issued; coverage is in effect. Would it be too obvious to say that you can't get a refund on the premium if you submit a death benefit claim? I would hope so...
As far as the OPs question- the insurer is liable for actions of the agent, and the insurer will have to comply with state regs even if the loser agent doesn't. I would absolutely try and get the agent to do what he was supposed to do in the first place. Tell him to call his underwriter, get on his knees, and beg forgiveness while asking that person to pleeeeeeeeze allow policyholder service process the refund.
Good luck, and let us know what happens.
InsTeacher 8)
Posted: Wed Jan 28, 2009 05:46 am Post Subject:
"Would it be too obvious to say that you can't get a refund on the premium if you submit a death benefit claim? I would hope so... " apparently it needs to be said to some people... I've actually had people ask if they can still get ROP after a death claim. Seriously.
Posted: Wed Jan 28, 2009 09:57 am Post Subject:
Gary, when and what are these administrative costs, broker fees blah blah that people are talking about? Just not something we have in the midwest? I've never seen or heard of this.
Sounds to me like an urban legend.
In Florida, it's a 100% refund of premum during the Free Look period.
Posted: Wed Jan 28, 2009 11:32 am Post Subject:
Sounds to me like an urban legend.
No sorry I was clear enough, I mean ANY time, I've never seen any adm. fees etc..on any types of policys canceled at any time...(after free look lets say)In Florida, it's a 100% refund of premum during the Free Look period
Posted: Wed Jan 28, 2009 12:54 pm Post Subject:
Lori, I'm not aware of such a thing.
Maybe it's a P & C thing? Or "other" country thing.
It doesn't happen in Florida, unearned premium is refunded.
Maybe a P & C agent will jump in here.
Posted: Wed Jan 28, 2009 01:34 pm Post Subject:
we have sent the insurance company documentation from our agent indicating he cancelled the policy within the right to review and cancel period.
To some extent it might depend on the quality of information that such documents are carrying. Also going through the paper-works (that you'd received while signing-up) carefully might give you a clue whether or not your policy has any specifications regarding such situations.
Posted: Fri Mar 27, 2009 09:11 pm Post Subject: cancellation & refund
i want to cancel my policy is it possible if free look period is over 45days its a case of mis seeling
Posted: Sat Mar 28, 2009 07:08 am Post Subject:
You may have to contact the agent and the insurance company. Hopefully you would be able to get the policy cancelled and the premium back. How was it a miss-selling? What kind of a policy is it?
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