How Illegal is It to Have 2 Medsops?

ijerome

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A client has had plan F medsup for 7 years. He called and told me he also has been paying Bankers for a plan J for a couple years. Since he is not allowed to have 2 medsups and since he isn't sure why or now he has the Plan J he asked if there was a way he has recourse to get his money back. He is in Ohio and his Plan F has been paying any claims he has had. I will have full details on his application and policy when he finds the papers, but he wants my help/advise on what to do. Aside from telling him that a phone call to me is free, what is the best way to handle his situation?
 
Sometimes the client forgets to cancel their old medicare supplement and the premiums deductions go unnoticed because they don't look at their statements. He should be able to get a refund from the Plan J. He'll just need to make a copy of his policy showing when his Plan F went into effect and possibly a letter from the insurance company showing his premium payments for the last 2 years as extra proof
 
Sometimes the client forgets to cancel their old medicare supplement and the premiums deductions go unnoticed because they don't look at their statements. He should be able to get a refund from the Plan J. He'll just need to make a copy of his policy showing when his Plan F went into effect and possibly a letter from the insurance company showing his premium payments for the last 2 years as extra proof

I doubt very seriously that he will get a refund. I can almost definitely tell you he will not get a refund for the two years premium. It would be a very bad idea to suggest to the client that it may even happen.

In fact, it is totally illegal for a senior to have two Med Supp plans. It is ultimately the agent's responsibility, the agent who sold the second policy could get in trouble. Remember, it is just the agent's word that the client told him he would cancel the policy.

That is not a pretty situation who sold the policy, I would not want to be that agent if the SHTF.
 
I doubt very seriously that he will get a refund. I can almost definitely tell you he will not get a refund for the two years premium. It would be a very bad idea to suggest to the client that it may even happen.

In fact, it is totally illegal for a senior to have two Med Supp plans. It is ultimately the agent's responsibility, the agent who sold the second policy could get in trouble. Remember, it is just the agent's word that the client told him he would cancel the policy.

That is not a pretty situation who sold the policy, I would not want to be that agent if the SHTF.

In a situation like that, both carriers can terminate the policy. If the proper replacement forms were completed, what more can the agent do?
 
In a situation like that, both carriers can terminate the policy. If the proper replacement forms were completed, what more can the agent do?

I'm not saying that the agent did anything wrong. It's how it's going to look. All the client has to do is say "the agent didn't tell me to cancel the other policy". It is always going to be the "agent's fault" whether it was or not. He is automatically guilty and it is up to him to prove his innocence. Do you really think the DOI is going to stick up for the agent?

I can guarantee if the DOI finds out about it or is told, the agent is going to have a whole ton of questions to answer. I sure hope the agent has some kind of documentation that instructions were given to the client to cancel the old policy. The DOI will want proof.
 
I can guarantee if the DOI finds out about it or is told, the agent is going to have a whole ton of questions to answer. I sure hope the agent has some kind of documentation that instructions were given to the client to cancel the old policy. The DOI will want proof.

What is your suggested protocol for agent documentation when replacing a policy Frank...? So that the agent could, if this situation presented itself in the future, prove that they instructed the client to cancel the other supp upon approval.

Form letter or other recommended approach to the client/and/or the Ins co once the new supp is approved and issued....?
 
He might not have told the newer agent he had another plan. Sounds possible with this guy.
 
Thanks for your replies. I will post the info from my client for further info when I receive it.
 
I doubt very seriously that he will get a refund. I can almost definitely tell you he will not get a refund for the two years premium. It would be a very bad idea to suggest to the client that it may even happen.

In fact, it is totally illegal for a senior to have two Med Supp plans. It is ultimately the agent's responsibility, the agent who sold the second policy could get in trouble. Remember, it is just the agent's word that the client told him he would cancel the policy.

That is not a pretty situation who sold the policy, I would not want to be that agent if the SHTF.

Actually it falls under the clients responsibility to cancel the policy. It says in the welcome kits that they need to cancel their old policy. Under no circumstances should an agent ever cancel a policy for someone unless it is your own. Of course I do assist those that want help by faxing it in for them...
 
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