New Workers Comp...Client Forgot to Cancel Old

[Surfy]

Let's say that I sold a workers comp policy to a company last year but that they forgot to cancel their old policy and paid for both.

What would have happened if there were any claims? Who would pay?

Would they be able to get a refund back from either insurance company (preferably not mine) since two policies were not needed?

Surfy

 

[Guest]

The newer policy would probally pay, and you will have to contact the old company and prove you replaced the coverage and they should get a refund.

 

[djs]

Yep, this stuff happens more than people realize. Clients get busy and forget to cancel stuff.

Lesson learned here for you is to get the client to sign the cancellation letter and then fax it/mail it for them. Provide them proof of the fax afterwards.

The previous carrier should retro the cancellation to the inception of the new policy. They will require proof of the new policy, i.e, the dec page. They will probably also require a written request to cancel the policy, just like they would normally.

Not a big deal. Nice to see the client had enough money this wasn't the biggest concern to them

Dan

 

[mmaedelins]

Yep, this stuff happens more than people realize. Clients get busy and forget to cancel stuff.

Lesson learned here for you is to get the client to sign the cancellation letter and then fax it/mail it for them. Provide them proof of the fax afterwards.

The previous carrier should retro the cancellation to the inception of the new policy. They will require proof of the new policy, i.e, the dec page. They will probably also require a written request to cancel the policy, just like they would normally.

Not a big deal. Nice to see the client had enough money this wasn't the biggest concern to them

Dan

I agree with DJS in saying you should do the cancellations for them. We send out a letter with the cancellation form saying so and so thanks you but... Plus, if you make your client contact their current agent to cancel, it gives the agent a great opportunity to try and convince your client to stay.