Protective Annual Payment Can't Cancel Coverage?

[SusieQ2]

Have client that did a 25 year term policy with Protective, paid annually. Found out he could do a 30 year term with me through AG for almost same amount of money, AG took more than the 30 day free look to get new policy issued. Protective is telling him there is not any prorated refund, that he cannot cancel and has to wait until the year is up and then just let it lapse?

Doesn't seem quite right to me. Anyone have any suggestion on how to get his refund? Seems like they have some liability here where it's a 25 to 30 year term change?

 

[goillini52]

Have client that did a 25 year term policy with Protective, paid annually. Found out he could do a 30 year term with me through AG for almost same amount of money, AG took more than the 30 day free look to get new policy issued. Protective is telling him there is not any prorated refund, that he cannot cancel and has to wait until the year is up and then just let it lapse?

Doesn't seem quite right to me. Anyone have any suggestion on how to get his refund? Seems like they have some liability here where it's a 25 to 30 year term change?

The 30 day free look starts the day he receives the policy. Did he have the policy 30 days before he tried to cancel it?

 

[SusieQ2]

Yes, he had it more than 30 days.

 

[goillini52]

Yes, he had it more than 30 days.

Some companies will, some won't. Write it up and replace it in 10 months.

 

[WinoBlues]

Have client that did a 25 year term policy with Protective, paid annually. Found out he could do a 30 year term with me through AG for almost same amount of money, AG took more than the 30 day free look to get new policy issued. Protective is telling him there is not any prorated refund, that he cannot cancel and has to wait until the year is up and then just let it lapse?

Doesn't seem quite right to me. Anyone have any suggestion on how to get his refund? Seems like they have some liability here where it's a 25 to 30 year term change?

Could have something to do with Protective being a UL.

 

[///MJay]

Could have something to do with Protective being a UL.

Sounds like the most likely cause. Any unearned premiums would just get eaten up by the surrender charge.