Instant O/O and Load boards

It has been a while since I dealt with financed insurance policies, personal lines are almost all done by the companies now. Used to be only excess lines that were financed (bad drivers). My memory is that the finance company has the right to cancel to the policy, so they were much quicker than the insurance companies. Different set of rules, they will cancel before the actual earned premium runs out.

 

Policies financed by a secondary company will often cancel faster than if done by the insurance company. They have the right to cancel the policy before the earned premium runs out. Insurance companies have to run the paid premium out and give more notice than the finance company. They have different legal requirements.

 

You are right, Pawnd. Personal lines are mostly done by the company, but in some cases, as in huge HUGE life policies, UL, VUL, etc, there is policy financing available. Never had that issue come up with Individual Health though, so I'll assume that finance co's dont fund health policies.

 

The question is what's this going to cost me? This is so stupid... you're 3 months ahead of real time every payment. Cancel for non-payment and then send you back thousands... that makes sense.

 

*links removed per forum rules, you can do a "google search" for insurance info.

 

My bad, I'm an idiot.

 

Ok... so my insurance agent called me back. This is a "shot across the bow" deal. Said it was NOT cancelled, it was just the early part of the finance company beginning their process, supposedly another 28 days or so until it would actually be cancelled. They should accept my payment today.. no mention of a reinstatement fee... I'll get back to you on that.

 

Yep.




.... but you're in solid company


Oh yeah don't forget you can PM me too.. links are fine there!

 

Because you weren't actually canceled, I doubt you'll get any kind of a reinstatement fee. I've gotten the same type of letter when I was a little late on payment for my construction liability insurance, and never had any kind of a penalty.

 

I was late this month, too. As you know, Pharm, money is tight for a bit. Decided to suck it up and keep it from lapsing. I would hate to see the fees that would accrue upon reinstatement.

Do insurance companies usually make you pay 6-10 monthly installments for the 12 month policy? I had just assumed that it was $2k down and $680/month forever. I'm going to call and see if I am actually paying for months ahead.