Policy Delivery Receipt never signed

[AnnuityGuy63]

I have a client in Pennsylvania with an annuity that she did not sign the delivery receipt. And the policy was only mailed to her. I was told by a coworker that since she did not sign a delivery receipt that she can surrender and get back her original premium without any penalty.

Is this true?

 

[Newby]

I help someone back out of a single premium life policy one time that was issued two years earlier because the company did not have a sign delivery receipt.
This lady swore that she never received a copy of the policy. I don’t know if she did or not. I was not the agent on the policy.

 

[AnnuityGuy63]

I help someone back out of a single premium life policy one time that was issued two years earlier because the company did not have a sign delivery receipt.
This lady swore that she never received a copy of the policy. I don’t know if she did or not. I was not the agent on the policy.

The client has 4 policies with Atlantic Coast and told me she never recieved any policies or delivery receipts... I was just in their QUEUE for about 25 minutes and they took my phone number to call me back. I didn't even get to ask a question. Once they do call me I will get the answers.

Thanks

 

[WinoBlues]

I help someone back out of a single premium life policy one time that was issued two years earlier because the company did not have a sign delivery receipt.

Same. Except FE and IULs

Another problem and positive of companies mailing policies direct to clients.
Problem - I have little control or tracking of delivery. Or able to copy the pages I will need to service and resell the client later. Exposing me to a potential charge back. Another reason to not write MoO.

Positive - It's is mainly on the Company. They mailed it. Of course, we the agent will be getting an email. I guess Another plus is no Priority mail fees.

To me the negatives out weigh the positives.

 

[Allen Trent]

The client has 4 policies with Atlantic Coast and told me she never recieved any policies or delivery receipts... I was just in their QUEUE for about 25 minutes and they took my phone number to call me back. I didn't even get to ask a question. Once they do call me I will get the answers.

Thanks

how does she know that she bought them & that she has 4 of them if she didnt receive any documents? Guessing she received something. Does she have policy #s to request duplicate policies.

I believe she will have 10 days after receipt of policy to surrender. If they cant confirm when she received it by delivery receipt or certified mail, she should be able to surrender.................but the carrier may have a case if she has had a many months or years as I dont know that delivery receipts are required by all carriers in all states

 

[Tahoe Ray]

I have a client in Pennsylvania with an annuity that she did not sign the delivery receipt. And the policy was only mailed to her. I was told by a coworker that since she did not sign a delivery receipt that she can surrender and get back her original premium without any penalty.

Is this true?

So I give a carrier tens of thousands of dollars and never bother to verify my balances/file my policies?

This just sounds ridiculous.

Sorry, didn't answer your question because this is likely dictated by the state and how the policies were funded but I just find the whole thing absurd.

 

[scagnt83]

Very state specific. In SC, a delivery receipt is not even required for an annuity.

 

[marindependent]

I have a client in Pennsylvania with an annuity that she did not sign the delivery receipt. And the policy was only mailed to her. I was told by a coworker that since she did not sign a delivery receipt that she can surrender and get back her original premium without any penalty.

Is this true?

This may sound like a crazy question - but why not ask the State Regulator what the State Law is?

 

[ehall2]

I had this to happen with a life policy. We did a 1035 exchange and rolled to a new policy. I asked the client what he wanted the money for and he said to send his one year old daughter to college. I explained the surrender chargers and told him it was a long term plan and if he was going to need the money in the near future this wouldn't be the thing to do. He wanted to proceed. I delivered the policy and got the delivery receipt signed. A year later the client needed some money for a business venture and wanted to surrender the policy. He surrendered the policy and when he saw how little he would get back he was not happy. He came to my office and told me he was going to sue the company and me and said, "I would have a front row seat in court." I told him I would see him there. The company, Time Insurance company, folded and returned him all of his money and sent me a letter demanding I return the commission of $4,500. I responded to them that I complied with the law, which in Georgia states that you have 10 days from the receipt of the policy to return it for a full refund but he waited one year so I would not return the commission because they took it upon themselves to make an exception to the law and refund the premium paid. I never heard from Time again.

 

[ATM]

THE INSURANCE COMPANY LAW OF 1921 - LIFE AND ENDOWMENT INSURANCE AND ANNUITIES, AND POLICY DELIVERY
Act of Jul. 10, 2015, P.L. 154, No. 30 Cl. 40
Session of 2015

No. 2015-30



HB 972



AN ACT



Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An act relating to insurance; amending, revising, and consolidating the law providing for the incorporation of insurance companies, and the regulation, supervision, and protection of home and foreign insurance companies, Lloyds associations, reciprocal and inter-insurance exchanges, and fire insurance rating bureaus, and the regulation and supervision of insurance carried by such companies, associations, and exchanges, including insurance carried by the State Workmen's Insurance Fund; providing penalties; and repealing existing laws," in life and endowment insurance and annuities, further providing for policy delivery.



The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:



Section 1. Section 404-A of the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921, added December 18, 1996 (P.L.1003, No.154), is amended to read:

Section 404-A. [Policy Delivery.--When the individual policy or annuity is delivered to the policyholder by the producer by hand, a delivery receipt shall be used. This receipt must be in a least a duplicate set and state the date the policy or annuity was received by the policyholder. The receipt date shall be the date on which the policyholder and producer sign the delivery receipt, and such date shall commence any applicable policy or annuity examination period. Copies of the delivery receipt must be provided to the policyholder on the date of policy or annuity delivery and to the issuing insurer. When the individual policy or annuity is delivered to the policyholder by a means other than by hand delivery by the producer, the insurer shall establish appropriate means of verifying delivery by the producer of the policy or annuity and of establishing the date from which any applicable policy or examination period shall commence. A certificate of mail is adequate proof of delivery.] Delivery of Individual Policies and Annuities.--(a) For purposes of determining the commencement of the period during which the owner of an individual insurance policy or annuity may exercise any statutory right to examine, surrender or return the policy for cancellation, the date of delivery of the policy or annuity shall be:

(1) the date of mailing of the policy or annuity by the insurer if the delivery is by the United States mail or other postal delivery system;

(2) the date the policy or annuity is physically delivered to the owner by a representative of the insurer; or

(3) the date of electronic transmission of the policy or annuity provided the electronic transmission has been effected in accordance with this section and the provisions of section 354.7 and any other state or Federal laws governing the electronic transmission of documents and information. The insurer shall retain evidence of electronic transmittal for the entire period of the insurance policy or annuity.

(b) In the event of a dispute with the owner of a policy or annuity, the burden of proof shall be on the insurer to establish that the policy or annuity was delivered. An insurer or representative of the insurer shall be deemed to have satisfied the burden of proof by showing, to the department's satisfaction, it has sent the policy or annuity in the normal course of business.

Section 2. This act shall take effect in 60 days.



APPROVED--The 10th day of July, A.D. 2015.