Death claim chargeback

[GeorgiaFA]

Recently helped a widow through the claim process. The insured had paid an annual premium and the company hit me with a charge back for the commission paid on the premium from the date of death to the next policy anniversary (approximately a four month span). The policy was in its ninth year. I have been licensed since 1989 and have never had this happen before. In fact, earlier this year, when another client passed who had paid an annual premium, that other carrier did not charge back the commission they paid. Has anyone else had any experience with this?

 

[Todd King]

Recently helped a widow through the claim process. The insured had paid an annual premium and the company hit me with a charge back for the commission paid on the premium from the date of death to the next policy anniversary (approximately a four month span). The policy was in its ninth year. I have been licensed since 1989 and have never had this happen before. In fact, earlier this year, when another client passed who had paid an annual premium, that other carrier did not charge back the commission they paid. Has anyone else had any experience with this?

The other company that didn't charge you back the "unearned" commission made a mistake.

I have never seen a company purposely let agents keep unearned life commissions.

 

[WinoBlues]

....the company hit me with a charge back for the commission paid on the premium from the date of death to the next policy anniversary (approximately a four month span). The policy was in its ninth year. I have been licensed since 1989 and have never had this happen before.....

I have had many claims. Never a charge back on a non contestable claim.

9 years - did they charge back that part of the unearned renewal? That would make sense. As they will refund the premium to the bene.

 

[Allen Trent]

I have had many claims. Never a charge back on a non contestable claim.

9 years - did they charge back that part of the unearned renewal? That would make sense. As they will refund the premium to the bene.

By law, a whole life policy has unearned premium for the number of days of overpaid premiums. So, if $730 paid annual & someone dies or surrendered on day 50 after anniversary, $100 was earned & $630 refunded to client (when surrendered) or added to death claim. When a renewal or new Premium is adjusted, it not only credits/debits am agents premium production but that also flows into commission adjustments.

 

[WinoBlues]

By law, a whole life policy has unearned premium for the number of days of overpaid premiums. So, if $730 paid annual & someone dies or surrendered on day 50 after anniversary, $100 was earned & $630 refunded to client (when surrendered) or added to death claim. When a renewal or new Premium is adjusted, it not only credits/debits am agents premium production but that also flows into commission adjustments.

OK MR Fancy Words.

You said it more better.

 

[GeorgiaFA]

Thanks for the replies!