guaranteed insurability rider denied due to agent error - options?

[u/needGuidance792087]

Basically the title, I have guaranteed insurability rider that my mom got me when I was a child. Due to a medical condition I can’t get any additional insurance so this rider is very helpful to get increases in insurance. I followed the process but my agent filled it incorrectly and it’s been denied and they won’t budge/ fix on their side.

What are my options? Her suggestion was to go through a regular medical exam but I know it will be declined and the reason we got this option was to avoid that. Should I file a complaint with the company?

[u/culzsky]

what do you mean agent error? you got guaranteed insurability cuz you knew about the health issue?

[u/needGuidance792087 → u/culzsky]

I’ve had this policy for years. This year is one of the years when I get more insurance without going through the medical exam. The agent went to get me the additional policy but filled it out incorrectly and now the company is saying they won’t honor it and I have to wait 3 more years( that’s the frequency) or go through an actual medical exam( when I know I won’t pass).

[u/needGuidance792087 → u/culzsky]

Also I go the insurance before the health issue came about. Based on familiar history my mom thought it could be an issue. I don’t want to get more personal about it. Glad she did because now I can’t get any.

[u/fromhelley]

Did the rider cost money? Did they refund that money from the date the rider was added?

There is likely a policy for you at some company. You will have to disclose the medical condition and the policy will be costly. But the same applies if you were able to use the rider.

Agent error is something you can try to work out with the agent. Can he find you a policy elsewhere with your condition? Of course a new picy will require a med exam and med records. But at least you will have a policy. If they cant find you a policy, they have insurance for mistakes.

As far as the company is concerned, ask them why the rider was accepted for so long. They errored too, by not rejecting the rider right away and offering a chance to redo it! They are not off Scott free! They have insurance for their errors as well.

[u/needGuidance792087 → u/fromhelley]

They aren’t rejecting the rider forever, just for this cycle. It’s a policy that you get say $30k as a new policy every 3 years and don’t have to go through a medical exam. Bc the agent made an error I am now out of this cycle and have to wait 3 more years and lose out on adding 30k. Does that make sense?

[u/fromhelley → u/needGuidance792087]

I dont sell a lot of life. It could, if a deadline was missed. Insurance is regulated by the state, including policy coverage.

If you put in a policy or in this case, send out an offer, then they can deny adding the coverage. If they dont put any exceptions into the policy, they will have to deny everyone or have a systematic way for anyone to apply for the rider if they are late. You have to set the same rules for everyone or you end up sued.

The company would be off the hook if a deadline was missed.

I was under the i.pression that you bought a rider so.e time ago. Its still agent error. The agent would have insurance for this. But you currently have no damages to claim. If you pass before the three years are up, then you have damages.

Its unfortunate, but I think any path you take will get you nowhere slowly.

I dont think its worth the stress. Whatever you are going through healthwise cant be easy. Really, the stress will hurt you, and you'll likely end up angrier at several points along the way.

For your health, I would say you shouldn't pursue this further. If you want your family to go after them agent after you're gone, gather the paperwork that explains the denial, tell them what happened, and make a video of you explain it that they could refer too (and maybe use in court -not a lawyer).

Think of yourself and more enjoyable things to do while you are still around and you'll be better off!

I wish you wellness and happier times!

[u/CourserofMerit]

Where are you located? Everything below is based on US law.

It all depends on why they're not accepting the form.

You say it was filled out incorrectly by the agent. In most cases, the agent represents the company and they just have to fix the error and issue you the increase.

If the agent somehow doesn't represent the company (yes, there are life insurance brokers), then it's the agent's error and they have to make you whole. They have Errors and Omissions insurance for just this case. They can provide you with $30k (the face amount, from other posts you've made) of life insurance at the contractual amount.

I can't see suing over this. Lawyers are too expensive. You could file a complaint with your state's department of insurance. This is a relatively easy contract question, and they do not like it when companies violate their contracts.

[u/needGuidance792087 → u/CourserofMerit]

Oh I absolutely won’t sue. My main goal is just to get them to issue the policy for the rate we agreed upon. My concern if I get a medical review is it will be denied. My agent basically said sorry I fucked up but I can still get you a $30k policy you just need a medical review, which in my opinion is not my fault.

I’m in NY state. If they don’t honor it I plan to file a grievance with the state insurance board.

[u/jagscorpion → u/needGuidance792087]

We don't know how exactly they messed up so it's difficult for us to advise.