Standard Won't Refund, Correct??

[abcsales]

I just sold a couple Medigap plans which will save them approx $1,500/year over what they are paying for Standard Life's plans.

They call Standard to cancel and Standard tells them they can cancel effective 1/1, however they can't refund them unused premium as CO is a no refund state. They are claiming this is part of the contract.

Really??? I have not heard CO is a no refund state, never had any issues with this except for with Standard

 

[medsuptage]

are they paying month to month?


That's pretty standard for month to month Bank draft. They won't prorate to the day for bank draft.

 

[abcsales]

no, the client paid annually.
Standard is saying that they won't refund their money, the husband is paid out until April and the wife till September. The customer service person said "well tell them that they can start their new plans in April and September" We can cancel effective 1/1, however we are keeping their money.

Then the customer service person tells me that if they signed up for a MA plan, that may change things. I told the CS rep that what they signed up for was none of her business, that they want to cancel and would like any unused premium refunded.

Why would rules change if they signed up for a MA vs a supp?? Would it benefit the client to just say they have a MA plan or would they have to prove this??

If said client has a claim in January, then Standard would technically be on the hook since they still have the premium--correct??

 

[G.Gordon]

Might be right. You may have to leave em alone until they are due to pay Std again. Lesson learned: If a prospect has paid annually, call the existing company to make sure they do refund. It is not required in all areas.

 

[jacobtn]

A good reason to encourage your existing book of clients to pay annually

 

[somarco]

Apparently this is a state by state thing (based on other comments) but I have never heard of a carrier being allowed to retain unearned premiums.

If the policyholder died would they tell the widow/widower to f-off?

 

[GoCubsGo]

Would it do any good to check with the DOI?

 

[G.Gordon]

In the event of death most, if not all, carriers that I have experienced will refund, some ask for a death cert.

 

[abcsales]

heard back from state DOI, no such law exists, Standard must pay them the unused premiums.

Only time I've ever had this happen has been with Standard

 

[djs]

...Standard must pay them the unused premiums.

Curious choice of wording. Did you mean 'unearned' premium? Just curious.

Dan