Life Insurance & partial payout?

[joeabc123]

What is the name of your state (only U.S. law)? Pennsylvania

My father passed away back in 2011 at the age of 68. I just found out from my mother that he had a fully paid up whole life insurance policy worth $50,000 but my mother only received $15,000 of that as the agents gave her some BS story about a mistake made by the original agents who started the policy for her and my father back when they were married in 1966. My parents have never missed a payment and were up to date on everything. I'm trying to obtain a copy of that policy to view for myself.

I'd like to know how this can be possible and what action I should take to investigate these claims Western Southern has stated. I believe they ripped my mother off and owe her another $35,000!

How would I proceed here?

Many thanks!

 

[adjusterjack]

What is the name of your state (only U.S. law)? Pennsylvania

I'd like to know how this can be possible and what action I should take to investigate these claims Western Southern has stated. I believe they ripped my mother off and owe her another $35,000!

How would I proceed here?

This is simple. Without the policy in hand you don't proceed anywhere.

When you find the policy come back and talk to me. I spent 35 years in the insurance business.

Find it quickly because the statute of limitations on breach of a written contract is 4 years in Pennsylvania. If the 4 years are already up since the claim was paid it might be hopeless even if you find the policy.

It might even be less if the policy has its own limitation period for a lawsuit against the insurance company.

 

[joeabc123]

Just asked mom about his policy and Western Southern took it when they gave her the $15k check! This pretty much seals the deal for me! They are thieves! I will insist she changes her policy now to another company. If a mistake was made by the original adjusters as claimed, these a-holes should have brought it to her attention to have it corrected, not sit on it and screw her in the end! The almighty buck, nobody gives a damn anymore for the client but rather how much they can put into their own pockets!

It was four years as of this past February anyway, jack, so I guess she's screwed.

I will still have my say with the a-holes as soon as I get the chance!

Thanks for the reply!

 

[cbg]

You of course have proof that they knew about the mistake in advance of the claim being filed?

 

[adjusterjack]

Just asked mom about his policy and Western Southern took it when they gave her the $15k check!

That's right. Life insurance policies have to be surrendered for a claim to be paid.

 

[Dandy Don]

Ask a question with the Pennsylvania Insurance Department:

http://www.insurance.pa.gov/Pages/default.aspx#.VllDviDnbmQ

Scroll down to the bottom, left hand portion of the screen to the "Ask a Question or File a Complaint" section.

Even if a statute of limitations has expired, the Insurance Commissioner needs to investigate Western Southern so that an attempt can be made to warn them so they will not continue this practice with other customers. Thank you for reporting this problem.