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 Posted: Fri Oct 10, 2008 3:56 pm Post subject: DO INSURANCE CO HAVE TO SEND YOU A REGISTERED LETTER THAT YO |
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| WHAT IS REQUIRED TO NOTIFY THAT INSURANCE WILL EXPIRE? |
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peach
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| Posted: Fri Oct 10, 2008 4:01 pm Post subject: |
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A letter, delivered through normal USPS channels. Your agent, if he/she is any good, should also be calling you - several times actually because they don't want to see your policy cancel. Depending on who you are with, you may even get an automated call stating that you are close to being cancelled.
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LifeIsGood
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| Posted: Fri Oct 10, 2008 5:18 pm Post subject: |
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| Totally agree with life here. You would definatly get a letter in the mail. When I didn't return some follow up papers on my teen and they were about to take him off our policy due to age they even called a million times. |
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fireyone
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| Posted: Sat Oct 11, 2008 10:24 am Post subject: |
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| Quote: | | WHAT IS REQUIRED TO NOTIFY THAT INSURANCE WILL EXPIRE? |
a bill that says, 'hey ins. is due'  and if you don't pay it you don't have insurance simple as that...does your light company send you a registered letter if you don't pay your light bill? nope they just shut 'em off.
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Lori
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| Posted: Sat Oct 11, 2008 7:12 pm Post subject: |
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| LOL Lori...thats a goos one..although the light company will send you warning letters in a different colored envelope. My mom-in-law use to get furious over this. Her regular bill would be sent in a regular envelope but let that sucker get two months past due and the next colored envelope to show up ikn the post office box was green. If things really got delinquent...it would be yellow. She use to complain that everyone would know her business by the color of the envelope. I said to her "they would also know your business if the houe was dark for a week from not paying the bill so whats the difference?" |
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fireyone
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| Posted: Sun Oct 12, 2008 11:31 am Post subject: |
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 People like your mother in law (and probably the OP) crack me up! it's always someone elses fault or responsiblity to make double, triple sure they know they are late...haha...life ain't that way...
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Lori
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| Posted: Sun Oct 12, 2008 1:44 pm Post subject: |
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I do not get it either. Before the electric bill was in mu hubbys name. She had it put into it before he turned 18. I still couldn't figure out how she did it but I know he ahs the same name as his Dad and she used his SS number. We found it out when he went for credit or I should say I found out he "knew" about it when we went for credit. His Dad was dying and on oxygen at that time and he couldn't take it out of his name. So we hounded her every month to keep it paid. His Dad died and we went and paid the bill in full (required to turn off an account) and that was that.
My Hubby never understood credit until we met and has come a long way in the responsibility Dept. I am proud of how he" grew up "and now is such a good guy.
Alot, I think comes from how a person is raised. You never missed a bill, a dentist/doctors app., or church in my home growing up. |
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fireyone
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| Posted: Sun Oct 12, 2008 6:48 pm Post subject: |
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Definately makes a difference in what you are taught, and what you see...if a kid see's parents dodging bill collector running up c cards, and trying to play the system, it's hard to change that, it's second nature to repeat it...good for your husband, I know first hand how hard it is to NOT turn out the way you were raise... 
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Mon Oct 13, 2008 1:38 am Post subject: |
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| Yep. It took some work but got him to understand it all was for the best. I try to keep good faith installed in my kids. Hope it sinks in. |
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fireyone
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| Posted: Thu Nov 06, 2008 4:50 am Post subject: |
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Okay, let's leave the lights on and talk about life insurance again.
No, a life insurance company DOES NOT have to remind, notify, advise, or warn someone their policy is about to expire. It is a good business practice and a better example of customer service, but not required.
This is especially the case when a policy is due to expire and the company suspects foul play on the part of the agent. I have actually seen electronic messages between branch managers and/or admin staff to a home office instructing them NOT to send a bill or reminder of premiums due.
Think about it this way: If you were an agents who sold someone a $500K whole life policy based on the promise that all premiums would mysteriously vanish in only 5 years, would you want them to start getting bills in the 4th year?
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InsInvestigator
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| Posted: Sat Nov 15, 2008 8:03 am Post subject: |
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InsInvestigator, What about grace periods?
Every state we're at my work has language within it's laws and rules that require insurers to provide several levels of notice to policyholders regarding premiums, including grace period statutes, premium options and expiration/lapse notification. Of course, the key is that these notices only have to be mailed to the last known address on record at the insurer, and rarely does any state have a rules that requires that the notification be sent by registered or certified mail. When I had my agency, my insureds always got copies of these notices as well as the agency.
The only situation in any insurance code that I'm aware of that does required registered or certified mail would be in disciplinary actions initiated by the state insurance division against licensees and certificate holders.
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InsTeacher
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| Posted: Sat Nov 15, 2008 1:08 pm Post subject: |
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| Quote: | | What about grace periods? |
(ins teacher) Just throwing this in for the 'masses'...Ins. teacher is speaking about life insurance (i assume)...most auto/homeowners, etc, do not have any grace periods...
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Sat Nov 15, 2008 4:33 pm Post subject: |
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On page #12 of their universal life policies, Metropolitan Life states:
Annual Report: Each year we will send you a report showing current death benefit, accumulation fund and cash value for this policy.
It will also show the amount and type of credit to and deduction from the accumulation fund during the past policy year.
Right below this, there is a section that says,
Limitation on sales representative's or other person's authority:
No sales chairperson it is or other person except our President, Vice- President, or Secretary may (a) make or change any contract of insurance; or (b) make any binding promises about policy benefit; or (c) change or waive any of the terms of this policy. Any change is valid only if made in writing and signed by our President, Vice President, or Secretary.
New York Life, Prudential, Allstate, Jefferson National, and a host of others have similar paragraphs in their policies.
In my opinion, what this means, in essence is: Yes, we'll send an annual report to the address we have on file and you need to understand it. However, if it is differs in any way from what your agent told you at the time of sale, too bad.
The grace period sections state:
If the cash value on any monthly anniversary is less than the monthly deduction for that month, there will be a grace period of 61 days after that anniversary to pay an amount that will result in a cash value being large enough to cover the monthly deduction. We will send you a notice at the start of the grace period. We will also send a notice to any assignee on our records.
If we do not receive a sufficient amount by the end of the grace period, your policy will then end, without value. However, your policy will not end during the first two policy years if a minimum premium amount is paid and no loans have been made.
Nothing I've posted here is meant to contradict, only to inform. I feel somewhat certain, however, that the companies will do what's best for them and then - what's best for the policy holders.
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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. |
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InsInvestigator
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| Posted: Sat Nov 15, 2008 10:48 pm Post subject: |
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Lori said:
| Quote: | | Just throwing this in for the 'masses'...Ins. teacher is speaking about life insurance (i assume)...most auto/homeowners, etc, do not have any grace periods... |
I was commenting on life insurance. Pretty much a standard minimum grace period of 30 days for most policies, however the law allows for a carrier to give more time than the statutory minimum. As far as auto and homeowner's policies, there are quite a few states that allow a "late payment" period, usually around 15 days, where the insurer will accept a payment after the due date and keep the policy in force uninterrupted. Losses during that period are not normally covered unless the premium was paid prior to the loss. "Reinstated without lapse" is the watch-phrase, but the term "reinstastement" in and of itself indicates a lapse in coverage.
InsInvestigator included in his post language from a Universal Life insurance policy. UL policies fund the cash value account differently than other cash value contracts. UL policies are primarily a hybrid product that functionally combine term insurance and a cash value account. The cost of the term insurance is deducted monthly from the cash value account instead of being taken directly from the premium. As such, as long as there's enough cash value in the account, the policyowner doesn't even have to send in a premium. Here's a quote:
| Quote: | | If the cash value on any monthly anniversary is less than the monthly deduction for that month, there will be a grace period of 61 days after that anniversary to pay an amount that will result in a cash value being large enough to cover the monthly deduction. We will send you a notice at the start of the grace period. We will also send a notice to any assignee on our records. |
If you look at the language, it indicates that the costs are deducted from the cash value, and there has to be enough cash to cover the deduction. If there isn't enough cash, because it's all been used up to pay for those deductions, then the policy will lapse. They are giving you 61 days (perfectly legal) to cough up enough premium to keep it in force. After that, poof! Policy over. Nothing left, no more insurance. The "assignee" they are referring to would be a "collateral assignee" in which the policyowner has used the cash value in his policy as collateral on a loan from other than the insurer. The assignee has superceding rights to the cash value in a policy equal to the amount owed on the loan. 
As far as the other quoted sections:
| Quote: | Annual Report: Each year we will send you a report showing current death benefit, accumulation fund and cash value for this policy.
It will also show the amount and type of credit to and deduction from the accumulation fund during the past policy year. |
This is all due to various "Notice of Information Act" and Graham-Leach-Bliley legislation. UL policies have been sening annual notices forever I think. I have a UL policy that I bought in 1983 and they send me quarterly reports. Just a bunch of numbers in columns that no one outside the business, and many inside the business don't understand. Next:
Limitation on sales representative's or other person's authority:
| Quote: | | No sales chairperson it is or other person except our President, Vice- President, or Secretary may (a) make or change any contract of insurance; or (b) make any binding promises about policy benefit; or (c) change or waive any of the terms of this policy. Any change is valid only if made in writing and signed by our President, Vice President, or Secretary. |
This is statutory and appears in every state. No person other than officers of the insurer are allowed to make changes to anything in the contract. I have heard I don't know how many producers and salespeople babble on about coverage in the contract in a vain attempt to interpret that coverage. Then the customer thinks something is covered for a particular hazard, and finds out later that it isn't. "The contract is the contract." Nothing an agent says, writes or promises is valid unless it's contained within the contract of insurance. The customer might get satisfaction, but not from the policy- he'll get it by suing the agent under E&O.
Don't worry about contradictory statements- that's what makes America great! I always enjoy a good challenge, and I'll be the first to admit if I'm wrong or have no clue. Thankfully, that rarely occurs! lol
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InsTeacher
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| Posted: Sun Nov 16, 2008 12:10 pm Post subject: |
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| Quote: | | "Reinstated without lapse" |
Oh yeah, I see that in about half the claims...(ten days in my area)...but (per the Ins. guru's in this area) that is NEVER to be confused as a 'grace period' I know I know....samantics in my book too, however I believe in a true 'grace period' a claim could result, the premium must be accepted...in the other, the premium does not have to be accepted, (the ten or 15 day deal)...
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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