Need Advise

[Insuranceman]

I have a case were the business owner just discovered that he has been paying double premiums for a year and a half a just now caught it. I had switched him from one plan to another plan about year and half ago and am almost possitive I CXL his first plan. But nothing to prove that I did,
Anyways he is insisting that it is all my fault and that I should paying him a year and a half in premiums. He's going to call me tonight so far I have only spoken to his secretary. What should I tell this guy ?

 

[Josh]

What state is this in? What line of insurance?

 

[Insuranceman]

Ohio, health Insurance

 

[txagt39]

The carrier may waive the premium on the plan that should have been cancelled if there were no claims paid. If not, hope you have a good E&O plan. I cannot believe the owner didn't realize he was paying double, of course we all know he will not take any responsibility....you could have facilitated his cancelling the old policy but ultimately it was his responsibility because he had to sign something, you could not have just cancelled it for him anyway. Good luck, you will likely need it. It may cost you the account at best but if you can avoid an E&O claim it would be worth it. Do you want to work for this type person anyway? Cut your losses some business is best left to someone else, especially when they are ready to hang you out to dry. It won't be the last time I'm sure.

 

[Josh]

So let's just get these facts straight. This guy paid premiums, received privacy notices, and at least 2 but possibly 3 sets of id cards from a carrier that he had cancelled his policy with and still didn't think something was up? It'd be helpful if you had some form of verifiable communication with the company the other company saying that he wanted to cancel his policy, but the notion that it was your obligation to cancel his insurance is more than a bit far fetched. Unless a court orders otherwise, you shouldn't pay him back his premiums because it would be considered rebating which is an issue.
If this ever went to court your client would have to explain to the powers that be why after receiving all the paperwork from the other company and paying the bill every month he didn't realize something was wrong, the argument of "I told him to cancel it" wouldn't carry much weight, especially if he can't prove that he ever made the request.
The real problem you have right now is that someone is upset because they spent a fortune on insurance they didn't need and they're angry about it, the client is worked up and making requests/demands out of the emotion, not actually looking at the facts. I'd call the carrier and see what can be done, they should be able to go back at least a few months, but I wouldn't be budgeting for your new e&o premium just yet.