Trying not to get involved
- Thread starter billyb
- Start date
- 5,939
No, it hadn't lapsed in that time frame, and I actually met with this lady, and identified her by DL during the sale, so there was no fraud. However, when I called the carrier to inquire about the way it was handled, they were quick to say: "if you can get the claim form signed, we'll pay off and reinstate your commission", which was actually kind of funny, since they had already sent the money back. Guess they were going to deduct the premiums from the DC, but still, the whole thing seemed out of whack.
So this is very interesting . Maybe others can chime in . I"m thinking maybe they must return the premiums to close the claim if the claim form is not filled out and the proceeds not paid out? It seems like a legal issue .I'm sure it rarely rarely ever happens as all want their money.
- 5,939
Who is the carrier?
- 4,990
that is not how it is legally supposed to work. Most states escheats laws state the death claim must be paid to the States unclaimed funds after X number of days/years after initially notification of a death. I believe Michigan is 3 years. Creditors could have a claim to it in some instances. So, it is odd for a carrier to decide to rescind a policy as if it never was active & refund the premiums. the refunded premiums would be owed to the deceased owner who isnt alive to collect, so they would be paid to the estate where creditors have 1st claim on a probate estate.
never heard of such a thing other than declined contestable claims or complete fraud at application. Even people murdered for their life insurance tend to still have the claim paid by the carrier, but not to the person that committed the crime, it usually flows past the beneficiary to the contingent or the probate estate
It is always the ones that did the least that demand the most.
- 26,079
Nice try, I value my appointment with them, which would certainly come to an end. This board is confidential, but large insurance carriers CID is worse than the FBI, if they want you, they'll find you.
Bam, there it is, and this is what bothered me the most, and why I questioned the legality of the issue. It seems to me, that this may have been an emotional decision. I know that they're supposed to be bigger than this, but the bottom to the top of the claims dept was cussed out, and they responded by refunding the premiums within less than 3 months.
I have experience with assisting with death claims for clients on old policies that I hadn't written. Sometimes they were discovered more than a few years after the death of the insured, and we were able to collect. Sometimes it was a paid up policy, who's owner had passed and the policy ownership was assumed by the beneficiary.
Even a policy that is a few years old has a modicum of paid up insurance. How on G-d's earth do you rescind it? The whole thing was preposterous.
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