Received a Flyer... what Company

[Jerard]

Thanks. How about the conditional receipt being by date of app.

The page that 5-Star calls the "Temporary Insurance Agreement" is actually what other companies call the conditional receipt. What is stated on the TIA with 5-Star has pretty much the same wording as any other conditional receipt, but it doesn't mention anything regarding being cover from the day of the app should you submit a voided check. Now, I'm no lawyer (laughs), but I would think what they have printed on the app supersedes what they tell you over the phone. Only what is printed on the app (which is given to the client) is legally binding.

What 5-Star is doing with regard to assuming the risk on the day of the app when only a voided check is given, this may or may not be legally binding and sounds contrary to FL State law. According to the Florida State Study Manual:

"
Consideration
For a contract to be enforceable, the promise or promises it contains must be supported by consideration. Consideration can be defined as the value given in exchange for the promises sought. In an insurance contract, consideration is given by the applicant in exchange for the insurer's promise to pay benefits, and it also consists of the application and the initial premium. This is why the offer and acceptance of an insurance contract are not complete until the insurer receives the application and the first premium.
"

I would think that "receipt of the first premium" would mean the day the company receives the cash. A voided check is not cash, but perhaps just a promissory note.

 

[WinoBlues]

I had a claim with United Heritage where the first draft had not be done yet. They paid it Had another with People's Benefit where they wanted to be real sure that I had a check in hand. In that case the app and check were still on my desk. They eventually paid.

Just want to CMA

The page that 5-Star calls the "Temporary Insurance Agreement" is actually what other companies call the conditional receipt. What is stated on the TIA with 5-Star has pretty much the same wording as any other conditional receipt, but it doesn't mention anything regarding being cover from the day of the app should you submit a voided check. Now, I'm no lawyer (laughs), but I would think what they have printed on the app supersedes what they tell you over the phone. Only what is printed on the app (which is given to the client) is legally binding.

What 5-Star is doing with regard to assuming the risk on the day of the app when only a voided check is given, this may or may not be legally binding and sounds contrary to FL State law. According to the Florida State Study Manual:

"
Consideration
For a contract to be enforceable, the promise or promises it contains must be supported by consideration. Consideration can be defined as the value given in exchange for the promises sought. In an insurance contract, consideration is given by the applicant in exchange for the insurer's promise to pay benefits, and it also consists of the application and the initial premium. This is why the offer and acceptance of an insurance contract are not complete until the insurer receives the application and the first premium.
"

I would think that "receipt of the first premium" would mean the day the company receives the cash. A voided check is not cash, but perhaps just a promissory note.

 

[jdeasy]

Does it say anywhere that the TIA is active at time of app not at draft. Probably not a biggie but a nice feature to point out at closing.

No, in fact, it says the opposite. It states, "Do not give this Temporary Insurance Agreement unless the minimum initial premium with the application"

That's whay I wasn't giving to applicants unless they wrote a check. 5 Star informed me that I was wrong and that an authorization was the same as submitting.

They did send out an email to that effect but I can't find it. I have been gving it every since though and they have not told me that the other interpretation was wrong.

Fortunately I haven't had to test the TIA and I hope I never do.

 

[Jerard]

Just want to CMA

That's the name of the game from the time you plant your feet on the floor in the morning until you lay back down again that night.

 

[WinoBlues]

No, in fact, it says the opposite. It states, "Do not give this Temporary Insurance Agreement unless the minimum initial premium with the application"

That's whay I wasn't giving to applicants unless they wrote a check. 5 Star informed me that I was wrong and that an authorization was the same as submitting.

They did send out an email to that effect but I can't find it. I have been gving it every since though and they have not told me that the other interpretation was wrong.

Fortunately I haven't had to test the TIA and I hope I never do.

We can always count on an insurance company to back the agents.