J
jksfitz
Guest
I recently determined that my insurance company cancelled my Life Insurance policy without informing me that they had done so. My husband and I both had life insurance policies with this company, and the premiums were automatically withdrawn from our checking account. We initially had an issue with them in that they did not activate my husband's policy, so we were only charged the premium for mine. I noticed that when I saw the amount of the withdrawal on my checking account statement. I called them about this and they told me it was all straightened out. From then on I could see that the withdrawal were significantly higher each month, so I assumed that both policies were now active and premiums were being paid, although I didn't verify that. About a year later we moved, and in the process of changing checking accounts, I called the insurance company to make the switch to have premiums for both policies withdrawn from the bank in our new city. They could only find the account for my husband. Turns out they had cancelled my policy, but had never informed me that they had done so. I told them I expect that they would reinstate the policy as it had never lapsed. The only evidence that I would expect to see of the lapse would be in the current value of what I had paid in. I told them I would not pay any penalties on this, since it was their fault it was cancelled and they had never informed me of it. Now they are insisting that I pay 6 months of the premiums that I missed, if I want the policy reinstated. Why would I do that, since I obviously lived thruogh those 6 months and this would be of no benefit to me, except for the cash value, which I don't care about? Are they not required by law to reinstate this policy as if it had never lapsed, since they did not inform me that it was cancelled? What rights do I have on this?