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We cancelled our life insurance and cancer policy back in October 2010. They were still taking the premium out through last month when we got it stopped.

The premium they were continuing to take out was just for the life insurance policy. They cancelled the cancer policy but not the life insurance policy. My husband had taken this out back in October without my knowledge and it made us overdraw at the bank and I made him cancel them. We couldn't afford them at the time. So he took care of it then the insurance agent came to the house and tried to convince us otherwise. We still told him no. Well last month I was looking over my statement and noticed the section for auto drafts and seen the name of the ins. company so I gathered the rest of the statements and sure enough they continued to take money out. $79 every month. The account was set for just bills so I would call every payday to check the balance and check to see what checks had cleared so I know I have enough to pay the bills. We have a certain amount drafted into that account every week which covers the bills and I would have to add money every week so I thought my math was off until I decided to look at the statement. So now we have contacted the ins company and at first they said sorry no problem blah blah blah. Now a month later we got the letter and they said they won't be refunding our money. What should be our next step? Anybody in the legal field out there?

 
luvmygrlz

Asked by luvmygrlz at 5:34 PM on Jun. 21, 2011 in Money & Work

Level 30 (42,250 Credits)
This question is closed.
Answers (8)
  • Look up who the Insurance Comissioner is for your state. You can make a complaint directly to the commissioner's office. But, before you do, try responding in writing to the insurance company. Put dates in the letter. Tell them that it is illegal to take money on a cancelled policy, and that if they do not refund the funds, you will file complaint with the state comissioners office.

    You can also call the customer service, and wait on the line for the supervisor. The regular employee is told to get rid of you, to put it gently, so you need to get beyond the gatekeeper.
    ImaginationMama

    Answer by ImaginationMama at 5:40 PM on Jun. 21, 2011

  • Did you cancel the policy in writing? If so did you keep a copy for your records? If you did write a letter to the CEO of the company. Enclose a copy of the letter and copies of your bank statement. Demand a refund. Unless you have the money to go to a lawyer that is your best bet. If you did not cancel in writing..all they will say is "prove you cancelled it".
    GrnEyedGrandma

    Answer by GrnEyedGrandma at 5:44 PM on Jun. 21, 2011

  • Check your policy and see if you should have written a letter to cancel the policy. If so, write and send that letter and keep a copy. Go in to your bank and tell them to stop withdrawals from that company. If you ever get insurance again get only level term insurance, no other kind.
    whitepeppers

    Answer by whitepeppers at 7:13 PM on Jun. 21, 2011

  • @GrnEyedGrnadma the agent said he was going to call us the following Monday (which we told him the answer will still be no on Monday) but he said our phone was disconnected the number he had was my husbands cell number but conveniently one number was wrong. Then he said he came to our house and we had up and moved. We moved but a good month later. In other words it sounds like home office contacted him when we wanted our refund to see what was going on and he's lying to cover his butt. We have the cancellation letter for the cancer policy but not the one for the life insurance because they didn't cancel it.

    luvmygrlz

    Comment by luvmygrlz (original poster) at 5:50 PM on Jun. 21, 2011

  • Um, I would guess at this point it's on you. How could you not notice an $80 withdrawl from your account for 9 months, especially if it was causing you to overdraw your account?
    Soniam301

    Answer by Soniam301 at 5:59 PM on Jun. 21, 2011

  • When it comes to insurance policy to cancel a policy it has to be in writing to the insurance company. You have a 30 day look in which you can cancel the policy without loosing any money. The agent should have informed you and I don't think that he informed the company he was trying to save the policy.
    Technically you were covered so it would only be in good faith for the company to make any refund.
    My advise to you if you have children try working around getting covered for what is affordable just to have something. Just think about it Insurance is to replace income so if it is difficult now with 2 income just think about one income being taken away.
    Fabe21

    Answer by Fabe21 at 10:19 PM on Jun. 21, 2011

  • And this is why you never set up automatic payments with a new bill. Your husband should not have given this company permission to withdrawal money directly from the account until he was established that he liked it and wanted to continue. You don't do this with a gym membership - they never cancel those - always a big fight. Anybody who wants you to sign on the dotted line right now, right away, immediately is suspect, but when they want access to your checking account you say NO!
    LoveMyDog

    Answer by LoveMyDog at 9:18 AM on Jun. 22, 2011

  • Do you have your cancellation request in writing or was it just over the phone? There would have had to have been paperwork signed, I think, to cancel the life insurance . . . does you husband have a copy of that?

    Update us on how things go. Good luck!
    ImaginationMama

    Answer by ImaginationMama at 1:21 PM on Jun. 22, 2011

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