Insurance company won't cancel a policy

[draporter]

What is the name of your state? California

My father was the owner and primary beneficiary of a life insurance policy he took out on my mom (she was the insured).

Dad died last year in July 2005. The monthly premiums were coming out of their joint checking account. My mom forwarded the death certificate to the insurance company and asked that the policy be cancelled since we have found out that the policy cannot be transferred to her as a surviving spouse because (we were told) my dad was the sole owner of the policy and is unable to authorize the transfer since he is dead. So my mom wants it just cancelled, period. She has written certified letters, talked to folks in the insurance company, etc. They keep giving her the runaround and bull and won't cancel it - in the meantime she still paying for something that can never be acted upon. Do my mom need a lawyer at this point? She is 70 years old and too old to emotionally handle what I deem is uncaring, insensitive and a greedy behavior. I feel her as an elderly person is being taken advantage of.

 

[john123456]

What is the name of your state? California

My father was the owner and primary beneficiary of a life insurance policy he took out on my mom (she was the insured).

Dad died last year in July 2005. The monthly premiums were coming out of their joint checking account. My mom forwarded the death certificate to the insurance company and asked that the policy be cancelled since we have found out that the policy cannot be transferred to her as a surviving spouse because (we were told) my dad was the sole owner of the policy and is unable to authorize the transfer since he is dead. So my mom wants it just cancelled, period. She has written certified letters, talked to folks in the insurance company, etc. They keep giving her the runaround and bull and won't cancel it - in the meantime she still paying for something that can never be acted upon. Do my mom need a lawyer at this point? She is 70 years old and too old to emotionally handle what I deem is uncaring, insensitive and a greedy behavior. I feel her as an elderly person is being taken advantage of.

Poster:

Stop paying the monthly premium and the policy WILL be canceled.

 

[moburkes]

Poster:

Stop paying the monthly premium and the policy WILL be canceled.

Now why didn't they think of that?

 

[Dandy Don]

Do a GOOGLE search to find the contact information for the California Insurance Commissioner (I'm sure he has a website) and file a complaint with him so he can investigate this on your mother's behalf. And also ask if it's possible for the premiums to be refunded. If they are making the deductions monthly and automatically then they are in big trouble for doing this (after you asked them to stop), and the commissioner will get them straightened out. You should have sent certified mail to have proof that you contacted the company about this, but the commissioner can handle it for you now.

DANDY DON IN OKLAHOMA ([email protected])

 

[Betty]

I worked for an ins. co. & this is the procedure they followed: They can't cancel or make any change on the policy without the owner's request. Since the policy owner is deceased, the co. required a copy of death cert., certified copies of Letters of Admin. appointing the personal rep. of the deceased owner, & a copy of the document showing the estate is closed if it is. The personal rep. can then name (designate) a new owner of the policy by completing change of ownership forms - ie he could name insured as the new owner instead of himself. If the deceased owner did not leave a will or will wasn't probated, we would suggest that an attorney or clerk of probate court be contacted (where deceased resided) for info on the procedure to file an affidavit for collection of personal property (the ins. pol.) without probate. I can't "swear" this is the procedure for all cos. though but this could be the reason the co. in this case won't cancel the pol.
edited to add the following: If premiums are not being deducted automatically from checking acct. & insured wants policy cancelled - stop paying the premiums & it should cancel (lapse) automatically - this was also suggested by john123456.

 

[draporter]

Insurance company won't cancel the policy

Thank you all for your advice. I truly appreciate it. Let me clarify something: My mother did in fact put a stop payment on the premiums being automatically deducted electronically from her checking account. The set amount was $60.00. She issued a stop payment for automatic deductions of $60.00.

The following month, her comes a deduction for $59.99!! Then she puts a stop payment for that amount. The insurance company changes the payment to another amount. Now she has placed a stop payment against any amount from the insurance company. I feel this company owes my mom her money back because that death certificate and trying to stop payment has been going on since December 2005. So she has tried to stop payment since last year- they keep harrassing my mom. Do I need an attorney?

 

[Betty]

It probably would be best. In order to see if your Mom can get any money back & to get any cash value when policy lapses (if there is any CV - it's according to type of policy), she would probably need to get personal rep (if there is one) or a lawyer involved. If there is a cash value, I doubt if they will pay it out to your Mom since she is not owner of the policy. You need to do something to get ownership changed. I'm sorry for all you have to go through. It can cause problems when the insured & owner are different & the owner predeceases the insured. The original OWNER can name a contingent owner but it doesn't look like that was the case here.