Cancellation Letter

[fetam]

Does anyone mind sharing with me a generic letter they are using to cancel a new clients old Med Supp plan with their old company. Wasn't sure exactly what is required to be included in that letter. Would love to have a generic one we could fill out at the time of the application and have it signed and ready to send in.

Any help or advice would be great. Thx!

 

[DS4]

8.16.10


ABC Ins Co
123 Anywhere St
XXXXXX, XX Zip Code

To whom it may concern:

Please cancel my Medicare supplement as of 9.01.10.

Thank you,



John Smith
Policy No XXXXXXXXXXX

 

[Frank Stastny]

To: Name of company
From: Name of policy holder and address
Subject: Cancellation of Med Supp policy
Policy number:

Please cancel the above mentioned policy effective (date).

(policy holders signature)

Be sure to have them save a copy of the letter. The letter should be sent directly to the insurance company, not the agent. If sent to the agent then most likely it will never get forwarded to the company.

Some companies are good about doing it on the requested date, others may attempt to draft the premium for the next month and claim that they didn't get the letter in a timely fashion. In that case your new client will have to ask and wait for a refund. It could take six to eight weeks.

As an alternative I suggest that they go to their bank and stop the draft. That insures that the company can't draft the account. Yes, there usually a stop payment fee charged by the bank. Most of my new clients stop it at the bank rather than run the risk of the company drafting their account and they have to wait several weeks for the refund.

 

[G.Gordon]

I use one for everyone:

Policy Action Request

To..........................................

From.......................................

Policy number/numbers....................................

Please take the following action on the listed policies on the indicated dates.

Cancel the listed policy effective..........................

Stop bank drafts effective...................................


Signed..................................................

Signed..................................................




(after faxing I put in back in the paper tray and print a fax confirmation report on the same piece of paper)

 

[GoCubsGo]

I suggest they call and cancel the bank draft along with mailing or faxing the cancellation letter.

 

[fetam]

Awesome info guys. I appreciate it!

 

[insurance0707]

If the insurance company still deducts the premium after you've sent in the cancellation request, they can call their bank and tell them an unauthorized deduction was made from their account. The bank will credit their account immediatly and take the money back from the insurance company. This will prevent them from having to wait for the refund from the insurance company. This has worked now for 3 different clients. I wish I would have known this one sooner.