Hey Lori, I have had the opportunity to meet with agents who make more than $250k annually and didn't always follow the rules and make decisions that were in the best interest of their clients.
Once the "official" portion of the investigation begins, their licenses are usually suspended. As you probably know, this suspends the distribution of commissions, renewals, or other income - from all insurance companies for, what could usually be, quite some time. In fact, I've seen investigations take more than a year to complete.
Can you imagine making that kind of money as an agent and have it suddenly "turned off completely" for 12-18 months?
That's the most fun of all. _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
Thanks InsTeacher for your explanation of things.
I seem to be reading posts for this topic in several different places, but go figure, we are all human, right? Even insurance agents.
To the original person who had the issue with the bank draft and the term insurance policy:
First of all, agents don't draft from anyone's checking account, insurance companies do.
In order for an insurance company to initiate bank drafts, they must first have a signed authorization from the person who will be the premium payor for the insurance policy. The insurance application, the signed bank draft authorization, the check for the first month's premium, and a "voided" check are all forwarded to the underwriting department of the insurance company. From this point, until the policy is actually issued, the agent has absolutely no control.
If I am contacted by a policyholder who wishes to "stop" a bank draft, I first have them sign a statement indicating their desire, then I forward (fax or mail) this request to the company. That's all I can do.
If the draft is not stopped in a reasonable amount of time, I suggest that the policyholder call their bank and stop it. A bank draft cannot be stopped by an insurance company instantly. It takes a little time.
There is one very important thing you need to remember - as long as the insurance company has accepted your premium twice - should you die during the process of getting the draft stopped - they are on the hook for the entire death benefit.
Maybe this insurance agent is not a professional, but maybe he/she is. Don't let the time frame of stopping a bank draft make this decision for you.
InsInvestigator, I'm surprised!
I'm surprised that you would find cutting off the source of income to a family - "fun". _________________
I certainly didn't mean to offend (or surprise) you, or anyone else for that matter, by sharing what I feel is a great way to spend the day.
Can you imagine how much guilt a DEA, FBI, or ATF agent would have to live with if, when he put a drug dealer away, he regretted cutting his family's source of income?
I've seen how dishonest insurance agents affect families and the pain it causes policy holders more times than I can count. I have absolutely no qualms about shutting a dishonest business down and seeing a license revoked. In my opinion, it doesn't happen nearly as often as it should. _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
In order for an insurance company to initiate bank drafts, they must first have a signed authorization from the person who will be the premium payor for the insurance policy. The insurance application, the signed bank draft authorization, the check for the first month's premium, and a "voided" check are all forwarded to the underwriting department of the insurance company. From this point, until the policy is actually issued, the agent has absolutely no control.
Agree...can't remember if I put this in this thread...the thing I was thinking might have happened (if she did NOT fill out additional work, and what you have discribed above) is if she already had it set up with this company and 'added' this policy they wouldn't need all of this...for instance I have three autos, one boat, one 4wheeler, and four life policys pulled from my checking account (same ins company) if/when I add a policy (even a life one) I tell or the agent asks, do you want this on your direct debt...I of course do...so it's added...see? I don't have to go thru that voided check thing or anything....since it's already set up...they just add this...I'm wondering if this isn't what her agent did? _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
Thanks Teach and Investigator, I thought I was going to have to get the fire extinguisher (is that spelled right?), oh well.
This situation has happened to me probably 200 or 300 times in my career.
Everyone needs to keep in mind, the insurance agent doesn't hold the customer's money in his sock drawer. He/she sends it to the insurance company along with the insurance application and the signed authorization for EFT withdrawals.
The person signing all the paperwork (the insured) has purchased life insurance and if the policy would have been issued, the person is insured the moment he/she signs the forms. So, if John Q. customer gets killed in a car wreck 30 minutes after the agent leaves the home, bingo, the beneficiary is paid the face amount of the life insurance.
The Insurance Commissioner can't stop the draft, neither can the President. The insurance company will stop the draft when properly notified, but it is not an "instant" process. Most of these "bank drafts" are mailed to the bank some 7 to 10 days before the actual draft date.
I promise you if you will just pick up the phone and call Foresters' Customer Service, your bank draft will be stopped.
1 800 828 1540
Investigator, why do you put us all in the same basket?
Maze, I most humbly apologize for the misunderstanding. Including you or anyone else that I consider a friend in any of my sometimes overly broad statements was not my intention. You can have your own basket.
Mark _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
Posted: Sat May 03, 2008 2:28 am Post subject: policy
Sorry about the entire issue ( taking payments without authorizations, etc) OMG...I bet that's a mess. I just thank goodness, that hasn;t happened to me. My insurance company (on my vehicle) is pretty good.
Sorry about the entire issue ( taking payments without authorizations, etc) OMG...I bet that's a mess.
I don't think the OP ever said anything about the insurance company or agent taking a payment "without authorization".
If we could see the original insurance application, I would bet my next paycheck that the applicant signed the application and the EFT authorization. The bank wouldn't release funds without proper authorization. This would get everyone involved in a lot of trouble.
This is a temporary problem which can easily be solved.
If we could see the original insurance application, I would bet my next paycheck that the applicant signed the application and the EFT authorization. The bank wouldn't release funds without proper authorization. This would get everyone involved in a lot of trouble.
I'm just SURE of it. _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
no Maze, and it used to really bother me too, but I try and remember, even if the OP doesn't post again, maybe they read it, or think of how many in same/similar circumstances do read and then don't feel they need to post because they got their answer! _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
I completed sigend up for term life insurance and decided to cancel the coverage wihtin two weeks and the agent said he would refund my check to me. Little did I know the agent has now without authorization drafted my checking account for the past two months and will not return my phone calls should I contact the Attorney General's Office? Foresters Life Ins. Agent.
For the sake of argument and not to be argumentive I don't believe this post.
First off the AGENT wouldn't have said he (as in him personally) would be refunding the check. He doesn't have the check nor was the initial premium made out to him. IT WOULD HAVE BEEN MADE OUT TO THE INSURANCE CO.
Secondly to draft a person's cheking account the account owner HAS to sign a pre-authorized check plan form AND submit a "VOID" sample check.
Is the OP going to claim now the agent stole one of his checks and wrote void on it AND forged the authorization signature?
Also once the application and premium are sent to the home office the agent is OUT of the transaction until the policy is issued except to help faciltate underwriters request for addition information.
Further, there isn't any reputable company out there who will even write any type of significant life policy WITHOUT taking blood and urine and until the paramed exam and lab tests are completed the life insurance WOULD NEVER GET ISSUED AND NO BANK DRAFT WOULD HAVE BEEN STARTED.
If OP would like to add more info I'll readily amend my statements above.
Please provide:
The name of the insurance company?
The amount you applied for?
Your age?
Your sex?
Smoker or Non-smoker?
Also, it would have taken less time to send the insurance company a certified letter return receipt telling them to CANCEL the policy and refund all premium paid then it did to write your post.
Further, ALL life insurance policies have a 10, 20 or 30 day FREE LOOK period that DOES NOT start until the day you receive your policy.
The FREE LOOK provision says if you are disatisfied for any reason with this policy return it to the agent or the company for a FULL refund of all premium paid and the the policy will be cancelled. _________________ Gary Spicuzza, *SAFE
Copyright 1956.
No rights reserved.
*Self Appointed Financial Expert
