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You are here: Experts > Money > Personal Insurance > Property & Casualty Insurance > Force place ins refund
Expert: Thom Brooks - 10/28/2009
Question
My mortgage ins. expired Nov. 06 in the same month in which I sold my home; however before I could close I had to pay my bank the full amount for the ins (approximately 10k, 1yr of coverage), which I didn't find out until I was at the title company on the day of the closing. I didn't understand this since I only had coverage for a few weeks, but they said it was policy to pay the whole year. I was told I would be reimbursed and that it would be simple and easy to get my refund, all I had to do was send a letter after closing asking that the force placed ins. be removed, I did so, but never received a refund and basically got the run around from the bank for the past 3 yrs. I don't know what to do, but I know I am entitled to this money. Please help!!!!
Answer
April, hello!
You need to send a certified letter to that company. You should request that the premium be refunded, showing them the last day you needed coverage. They will refund the balance but will charge for up to the day you needed to be insured. The balance will be returned to you (Pro-Rated) but they have a right to charge up to 10%
penalty, (called Short Rate Cancellation) from that Pro Rata amount.
If they appear to be slower than you think is fair, you should advise them in the letter that you will forward a copy of your complaint to your state Insurance Department and ask the state to investigate them for a violation of the Unfair Claims Settlement Practices Act. Send it to the Senior Claims Manager at the Home Office. If you gave it to an agent, that agent may not have submitted the claim papers to the home office, or have been negligent in sending it in.
If the agent wrote a policy on a Minimum Earned contract, it means the policy has to be guaranteed to be paid by the client and if the client fails to pay it, the agent is charged for 75% of the premium for that year. Maybe the agent has not done what they needed. I do not know both sides but you certainly need to make contact with the home office and to document everytime you speak to anyone, date and time, and their position.
Wish you the best! Let me know when you get this handled.
Thom Brooks
www.BrooksInsuranceSchool.com
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