Inception Date Clarifications. Sos

Feb 17, 2016

  1. mimayave00

    mimayave00 New Member

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    I would just like to ask if an insurance company is allowed to make
    memorandum of agreement with another company with the policy term of
    12months starting noon of the inception date. Say for example, Company
    A is a lending institution and had an agreement with Insurer X for its
    group insurance. Company A and Insurer A both signed the MOA on
    November 30, 2014. Now, a group of clients with six months loan term
    availed of the insurance on November 15,2015. A claim arises on
    December 15, 2015. Insurer A denied the claim and referred to the MOA
    that the policy term shall only be for a year, which in their case
    ended on November 30, 2015.
    Is that allowed? Clients paid on November 15,2015 for six months
    coverage of insurance and it has only been a month when a claim arises
    and the Insurer denies to do its part because of the MOA. Please
    enlighten me with this matter.
    Thank you.