Newborn baby girl in New York life insurance deal!

[Marko Rubio]

They don't want to end it.

The insurance business is a constant push and pull balance. They want as much as they can get in sales, but then the actuaries and underwriters want to limit and spread the risks.

These policies are unexpectedly becoming an unbalanced portion of Allstate's business. They aren't sure what to do about it. So they are trying all kinds of things to limit their risks and try to get business that they think might stay on the books for longer.

so do u actually think that with the time this will be blown in a full investigation going thru every policy they approved already if it meets all there terms?

[Marko Rubio]

so do u actually think that with the time this will be blown in a full investigation going thru every policy they approved already if it meets all there terms?

@chasuna fund BUMP

[ChasunaFund]

@chasuna fund BUMP

http://forums.dansdeals.com/index.php?topic=59199.msg1373784#msg1373784

[ChasunaFund]

so do u actually think that with the time this will be blown in a full investigation going thru every policy they approved already if it meets all there terms?

I think this might be an agency by agency case. If they see a lot of garbage coming from one agency, they are likely to look into all the policies from that agency.

What they can legally do when a policy was already issued is a different question. If applying parent didn't have 4x the insurance on the kid, then they can and ARE REQUIRED BY LAW to either cancel the policy or reduce the death benefit to the greater of 50,000 or 25% of what the parent had at the time. Anything else, IMHO they have a very weak case, and while they might try, I think they give up with the slightest push-back (for example if they ask for policy numbers for anyone but the applying parent and you refuse to give it to them).

[Marko Rubio]

saw that but i need it in english pls

btw i think this 2 threads should be combined (mods?)

[Jkhein]

I think this might be an agency by agency case. If they see a lot of garbage coming from one agency, they are likely to look into all the policies from that agency.

What they can legally do when a policy was already issued is a different question. If applying parent didn't have 4x the insurance on the kid, then they can and ARE REQUIRED BY LAW to either cancel the policy or reduce the death benefit to the greater of 50,000 or 25% of what the parent had at the time. Anything else, IMHO they have a very weak case, and while they might try, I think they give up with the slightest push-back (for example if they ask for policy numbers for anyone but the applying parent and you refuse to give it to them).

you are referring just to applying parent, but the new regulation wants both parents to have 1mil each, correct?

[Marko Rubio]

I think this might be an agency by agency case. If they see a lot of garbage coming from one agency, they are likely to look into all the policies from that agency.

What they can legally do when a policy was already issued is a different question. If applying parent didn't have 4x the insurance on the kid, then they can and ARE REQUIRED BY LAW to either cancel the policy or reduce the death benefit to the greater of 50,000 or 25% of what the parent had at the time. Anything else, IMHO they have a very weak case, and while they might try, I think they give up with the slightest push-back (for example if they ask for policy numbers for anyone but the applying parent and you refuse to give it to them).

but how can they know if the applying parent didnt have 4x the amount if they didnt ask for policy numbers? Can they ask for it in lets say 5 years, what happens if they are being pushed back if they ask for it, can they force to give it for them?

[ChasunaFund]

you are referring just to applying parent, but the new regulation wants both parents to have 1mil each, correct?

Correct. Under their NEW guidelines they are asking that BOTH parents have 4x the amount of insurance on the child. These guidelines were not in effect until before yesterday, so on policies already issued they CANNOT LEGALLY GO BACK and add in these requirements.

[ChasunaFund]

but how can they know if the applying parent didnt have 4x the amount if they didnt ask for policy numbers? Can they ask for it in lets say 5 years, what happens if they are being pushed back if they ask for it, can they force to give it for them?

That's an excellent question. They could go to court and then you might be forced to show proof.

The other thing that could happen is that this might be handled by the NYS insurance department, and then you are dealing with a government agency that will be telling Allstate that they are required to reduce the face amount of the kid's policy to $50,000 unless Allstate can show proof that the parent had 4x the amount of insurance.

So that would make it a different story, Allstate will tell you that they are being asked by the state to reduce the policy to $50,000 unless you can prove that you had $1,000,000 at the time they issued the policy. What do you do then? We recommend that everyone keep proof of the insurance they had at time of application, including temporary insurance receipts, etc. Keep that proof along with the Allstate policies just in case this everything comes back.

[Marko Rubio]

lets hope they should never come back, im just curious if the parent didnt have 4x the amount lest say on 3x the amount, can allstate reduce the policy or to 25% or $50,000? Like they have the choice to decide, or its 25% from the amount u have?

[Marko Rubio]

wow heard now from a friend that allstate is calling around now ppl that signed the policy already but policy is still pending asking them if both parents have a million $ LI, if answer is no they say sorry we cant submit your application

[ChasunaFund]

lets hope they should never come back, im just curious if the parent didnt have 4x the amount lest say on 3x the amount, can allstate reduce the policy or to 25% or $50,000? Like they have the choice to decide, or its 25% from the amount u have?

If parent applicant didn't have 4x the amount, they are required by state law to reduce the face amount on the child's policy to 25% of the amount in force on the parent. So if the parent had only $750,000 at the time, they would be required by law to reduce the face amount on the child's policy to $187,500, and they would refund the difference in premiums.

[ChasunaFund]

wow heard now from a friend that allstate is calling around now ppl that signed the policy already but policy is still pending asking them if both parents have a million $ LI, if answer is no they say sorry we cant submit your application

To the best of my knowledge Allstate is not calling anyone. Allstate is requesting policy numbers and carrier name on the parents insurance for all pending and new applications.

[Marko Rubio]

To the best of my knowledge Allstate is not calling anyone. Allstate is requesting policy numbers and carrier name on the parents insurance for all pending and new applications.

till what stage is it pending? If u esigned it is it still pending?

in my case they charged already my cc but i didnt receive yet the policy, am i still pending or charging my cc means that im approved?

[ChasunaFund]

till what stage is it pending? If u esigned it is it still pending?

in my case they charged already my cc but i didnt receive yet the policy, am i still pending or charging my cc means that im approved?

I don't think that charging the CC means you are approved. We mostly indicate on the application that payment is being submitted with the application. For most life insurance companies that puts temporary insurance in force, and checks are cashed even before approval.

[Marko Rubio]

I don't think that charging the CC means you are approved. We mostly indicate on the application that payment is being submitted with the application. For most life insurance companies that puts temporary insurance in force, and checks are cashed even before approval.

so how are they asking now all these questions for the applications that are pending and already signed?

[Marko Rubio]

To the best of my knowledge Allstate is not calling anyone. Allstate is requesting policy numbers and carrier name on the parents insurance for all pending and new applications.

this is in conflict for what u answered yesterday for hamavin in the other thread from this (i dont know how to post a link) u said there that once u signed it there is an argument that they cant put in new directives

[ChasunaFund]

so how are they asking now all these questions for the applications that are pending and already signed?

Asking for policy numbers is not something we can argue about, they always have a right to ask any question they want until they approve the policy.

Regarding requiring both parents to have $1,000,000, the Allstate agent we are working with is trying to argue that anyone that applied before they changed their rules, should be approved, but we don't have an answer about that yet. A lot of policies were approved on Thursday last week, as insurance companies always rush to do as much as possible business in December.

[ydf]

anyone here can post a link or tell me how i can heck the status of my application for this policy? TIA

[ChasunaFund]

anyone here can post a link or tell me how i can heck the status of my application for this policy? TIA

Only the Allstate agent that submitted the application can check that.