Insurance Query

wonky79

So here's the deal...I took out life insurance via a broker last year as they had a sale and it was something like 70% off. 12 months later I get the standard letter from the insurance company saying that the premium is due for renewal. I canceled it and went with somewhere cheaper. They had already taken the full premium amount from my account, but have refunded it a week or so later. The problem is I then get an email from the broker saying I owe him the rest of last years premium (around 690) because I didn't keep the policy for 13 months as was the terms of the sale and he now wants to claw back the money from me. Now I didn't receive any notice from the broker reminding me of this fact (if i did i would have left the policy in place for the extra month). I can't find any documents stating the 13 month clause he mentions. It seems very underhand to me...standard action after receiving a letter stating your policy is due for renewel is to either cancel it or continue with it. The letter from the insurance company never stated the 13 clause that the broker had. Do i have to give the moeny back or have I any leverage?

Andrew33

wonky79 wrote: »

So here's the deal...I took out life insurance via a broker last year as they had a sale and it was something like 70% off. 12 months later I get the standard letter from the insurance company saying that the premium is due for renewal. I canceled it and went with somewhere cheaper. They had already taken the full premium amount from my account, but have refunded it a week or so later. The problem is I then get an email from the broker saying I owe him the rest of last years premium (around 690) because I didn't keep the policy for 13 months as was the terms of the sale and he now wants to claw back the money from me. Now I didn't receive any notice from the broker reminding me of this fact (if i did i would have left the policy in place for the extra month). I can't find any documents stating the 13 month clause he mentions. It seems very underhand to me...standard action after receiving a letter stating your policy is due for renewel is to either cancel it or continue with it. The letter from the insurance company never stated the 13 clause that the broker had. Do i have to give the moeny back or have I any leverage?

Try consumer affairs? If broker can't raise any documentation showing this 13 month clause (with your signature on it!) he hasn't a leg to stand on(I would think).

funkyjebus

not consumer affairs. get onto the financial regulator is would regulate the broker you used. they are the only people to contact in this instance.

dudara

Moved to Banking & Insurance & Pensions

Ask the broker to provide you with documentation supporting this clause. This has to be documentation that you signed etc accepting the clause.

dudara

wonky79

if i did sign something (i can't remeber if i did) would i have any leg to stand on? It would seem quite an underhand scheme to me with no reminder being sent out. It seems they would bank on you forgetting and so would get the full amount. Insurance policies work on a 12 month basis

funkyjebus

wonky79 wrote: »

if i did sign something (i can't remeber if i did) would i have any leg to stand on? It would seem quite an underhand scheme to me with no reminder being sent out. It seems they would bank on you forgetting and so would get the full amount. Insurance policies work on a 12 month basis

No, you don't have to sign anything to effect an insurance policy. You would have given your broker an instruction to proceed which will act as your agreement. The broker however would have had to disclose the 13 months clause to you before any such instruction, especially since its an odd clause. If he didn't or can't prove it, he doesn't have a leg to stand on and any premium variance due to insurers would be the brokers to bare. Ask the broker for evidence of these and if he can't prove and is still being a pain, just tell him your going to the FR and he'll comply or pay.

ps - I'm an insurance broker - the good kind

Andymfinancial

wonky79 wrote: »

So here's the deal...I took out life insurance via a broker last year as they had a sale and it was something like 70% off. 12 months later I get the standard letter from the insurance company saying that the premium is due for renewal. I canceled it and went with somewhere cheaper. They had already taken the full premium amount from my account, but have refunded it a week or so later. The problem is I then get an email from the broker saying I owe him the rest of last years premium (around 690) because I didn't keep the policy for 13 months as was the terms of the sale and he now wants to claw back the money from me. Now I didn't receive any notice from the broker reminding me of this fact (if i did i would have left the policy in place for the extra month). I can't find any documents stating the 13 month clause he mentions. It seems very underhand to me...standard action after receiving a letter stating your policy is due for renewel is to either cancel it or continue with it. The letter from the insurance company never stated the 13 clause that the broker had. Do i have to give the moeny back or have I any leverage?

The broker would have had the terms of the contract in his Terms of Business Letter. One way around it is to ask for the policy to be re-instated and then just pay for the 13th month only. Unfortunately the broker is within his rights to do this if its in his terms of business letter