C
corey_floyd
Guest
Insurance company can open new policy without consent?
I have recently bought a new house in Texas. I called several companies for insurance quotes. When it was close to closing on the house I called to let my lender know that I had chose insurance company "A" I had them send the binder. My lender told me early that morning she had spoken to insurance Company "B" and they had already sent a binder. We corrected the mix up and had my contract and note drawn up with company "A". I had given no other thought to insurance company "B" since i never requested a policy from them, written or verbal.
Today, I recieved not just a bill from company "B", but a reminder to pay. I found this very disturbing. When I called up, they told me that my lender said they needed the binder so the opened up the policy on my behalf. In addition, the insurance company is now telling me the paperwork loops I have to jump through to cancel my policy, eve though they needed none to open it.
My questions are:
1. Did the insurance company have any legal right to open an account without my explicit authorization, written or verbal?
2. Did the lender have a legal right to open a policy in my name, without a Power of Attorney?
Should the insurance company have requested a Power of Attorney from the lender before opening the policy?
Thank you for your help.
I have recently bought a new house in Texas. I called several companies for insurance quotes. When it was close to closing on the house I called to let my lender know that I had chose insurance company "A" I had them send the binder. My lender told me early that morning she had spoken to insurance Company "B" and they had already sent a binder. We corrected the mix up and had my contract and note drawn up with company "A". I had given no other thought to insurance company "B" since i never requested a policy from them, written or verbal.
Today, I recieved not just a bill from company "B", but a reminder to pay. I found this very disturbing. When I called up, they told me that my lender said they needed the binder so the opened up the policy on my behalf. In addition, the insurance company is now telling me the paperwork loops I have to jump through to cancel my policy, eve though they needed none to open it.
My questions are:
1. Did the insurance company have any legal right to open an account without my explicit authorization, written or verbal?
2. Did the lender have a legal right to open a policy in my name, without a Power of Attorney?
Should the insurance company have requested a Power of Attorney from the lender before opening the policy?
Thank you for your help.
Last edited: