Posted 07-27-2004 at 11:38:16
[Reply] [Send Email]
What you just described is illegal in my state.
Somewhere in the back of my head I think I read that you were from Minnesota. I don't think it is legal there either. I would certainly give your insurance commissioner a call and ask about it.
Don't get me started on insurance. It is one of the biggest scams out there. Best advice I can give is to ONLY buy coverage for losses that you cannot absorb yourself. Generally, they want to sell you coverage for everything else BUT that.
Servicing of policies has been extremely poor and almost universal. You just send them money--they never want to hear from you about anything else.
I am a stockbroker who is also licenced to sell health and life insurance because I have a few clients with annuities that were purchased elsewhere.
I hate them, and will never sell them myself.
Insurance companies are ALWAYS a problem to deal with, and they NEVER do what they are obligated to do without a fight or trying to weasel out of it somehow.
Right now I am fighting with three of them. I had a client that died last December at the age of 91. He had three seperate whole life policies that he was paying premiums on. NONE have paid to this day. ALL claimed that the insurance was not if effect, but REFUSED to supply any documentation. Meanwhile ALL THREE have billed the deceased man for this exact coverage that they claim he doesn't have....Argh!!!!
It is really frustrating to have to deal with this crap all the time.
Calls and complaints to the insurance commissioner seem like about the only way to get anything done.
Best advice I can give people is to minimize your exposure to those vultures to the greatest extent that you can. Of course, you need auto, health, and homeowners. Just don't buy any more than you really need.
Sorry for the rant, but they really get my goat.