Paid Annual for Colonial Penn Plan F

[WCMason]

The termination of coverage date would be the date that it's paid to. So, if it's paid to 01/01/2016 isn't that the termination of coverage date?

No it would not. The termination of coverage date is the date the policy holder requests coverage be terminated. The annual payment does change the policy to an annual contractual obligation.

 

[G.Gordon]

It also depends on your state insurance laws. Missouri is a no-refund state, but most carriers will refund the left over premiums. Bankers Life and United American have refused in transactions I've had before. Sure makes the client happy, but they will damned sure move when that paid to date gets closer.

 

[somarco]

Carriers are generally not allowed to retain unearned premiums. That being said, I am not familiar with no-refund laws and surprised they exist. Would the same apply if someone paid an annual premium on a life insurance policy and died 30 days after the effective date could the carrier keep the remaining 11 months?

P&C carriers used to have short rate cancellation clauses in an attempt to preclude early termination. Pretty sure most of those have been eliminated.

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Just found this.

General Insurance FAQs | Missouri Department of Insurance, Financial Institutions & Professional Registration

Does the company have to refund my premium on the auto/homeowner's policy if I cancel the contract?

Yes. However you may receive less than the unearned premium because the company may charge the consumer for processing the cancellation or setting up the original policy.

 

[axeman462]

I have a client that paid annual for their Colonial Plan F. I will be switching them to a different carrier Plan F. Is it safe to say CP will have to refund the client for the months they will not be w/ CP?

Yes........................

 

[Russ]

Missouri....

If you pay annual premiums, a new law signed by Gov. Nixon requires insurers to refund your premium if you cancel coverage before the end of the policy year. For example, if you pay your annual premium and cancel six months later, you’ll get a refund for six months of premiums.

 

[goillini52]

Carriers are generally not allowed to retain unearned premiums. That being said, I am not familiar with no-refund laws and surprised they exist. Would the same apply if someone paid an annual premium on a life insurance policy and died 30 days after the effective date could the carrier keep the remaining 11 months?

P&C carriers used to have short rate cancellation clauses in an attempt to preclude early termination. Pretty sure most of those have been eliminated.

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Just found this.

General Insurance FAQs | Missouri Department of Insurance, Financial Institutions & Professional Registration

If someone dies, the pro-rated refund wouldn't be in question. I've had their premium pro-rated down to the day.

As far as a pro-rated refund because they want to cancel to switch carriers...I've just called my DOI, and they referred me to SHIP, who in turn referred me to Medicare(I gave up trying that route...they just keep asking for a Medicare claim#). I finally called a few companies. One told me they refund with the copy of an enrollment with the new company. It took 5 minutes of explaining what I was talking about to another one, I was finally told they would refund. A third company told me it depends on the state. When I asked him which states don't have to make refunds I was told there' are too many to read off...that it's about half of them. My state is one that does.

Bottom line...I learned something from this thread. Years ago most companies wouldn't refund. As I mentioned, I rarely run into anyone that pays annually anymore. In the future if I do, I'll know that they can get a pro-rated refund.

 

[G.Gordon]

Thanks, Russ. My encounters were about 10 years ago, can't say I've had issues since those two, but I sure remember it and the client did as well. Never made sense to me that they could possibly keep it.

 

[jeffdcar]

I called my SHIP(Colorado) they said yes,also called CP they conformed. thanks all!

 

[FRJ]

I had a client that inadvertently kept a Medicare Supplement from a major carrier and signed up for a MAPD plan from the same carrier. Kept both for more than two years! I informed her that she was throwing away money and suggested we talk to the carrier about the situation. Would you believe that they refunded over two years of med sup premium!?!? Wow, I was pleasantly shocked.

 

[somarco]

Not surprised at all. I assume you wrote the MA but not the Medigap. Some agent is not going to be pleased at a 2 yr chargeback assuming they are still around.