November 9, 2007
TO WHOM IT MAY CONCERN:
Hello I live in Houma, Louisiana. Recently my husband changed jobs and is working contract in the oilfield. As a result we now have to provide our own health/major medical insurance instead of thru an employer. We are currently continuing with a Cobra plan provided from his most recent employer, although it is only offered for a limited time, in addition, the monthly premiums are terribly high. Subsequently, I have been looking for a family health care/major medical plan to cover our family.
On 10-11-07 I wrote a check to UNITED AMERICAN INSURANCE COMPANY for $745.96 for the first month premium which included a $6.00 application fee. The check was post dated 10-15-07; I was told by the representative Beau Wiggins that the check would not be cashed until at least the post dated date. On 10-15-07, I emailed Beau and cancelled the application because the coverage was not going to include a prescription plan which I need. The check I wrote was still cashed and cleared my bank for payment on Oct. 30, 2007.
On Nov. 7,07, I called UNITED AMERICAN INSURANCE COMPANY and spoke to a representative and was told that I would not get my refund until the end of the month and that refunds are only issued 20 days after policy cancellation…now mind you, I NEVER had a policy I stopped the application process on the 15th. Not to mention, the 20 days was up on the 5th. In any case the representative said that if I would fax proof of the cancelled check showing that funds were issued, I would then be able to get my funds sooner. I faxed the requested information at 4:10pm on the 7th. On Nov. 8, 2007 I spoke to another representative with United American and was told that the fax had been accepted on the 8th and it would take yet another 7 working days for me to get return of my funds. I am furious that this insurance company can do this with my money. A check that was cashed for a policy that I never even had. In the meantime, I am stuck, not able to apply for insurance until the funds are returned to me all the while having to pay almost $200.00 more a month for our current policy.
My husband is a hard working man who works in the Gulf of Mexico, $745.95 is a LOT of money to us. I am appalled that these insurance companies can demand people who are in need of insurance to pay the first month’s premium before a policy is even issued, and to hold these large amounts of money for so long. I can see charging an application fee.
While I was waiting on the refund from United American I was searching for another company to insure my family and on October 22, 2007 I sent the required first month premium to another insurance company of which we were denied due to pre-existing conditions and I received the refund check on October 5, 2007 which was certainly timely. Doesn’t it seem wrong that I am still waiting on a return check from Oct.11th yet I’ve received a refund check from another company that I wrote 11 days later?
I hope that you may find it important to investigate and share this situation and make innocent people aware of what these insurance companies are doing, so that other people don’t get ripped off like me.
Sincere thanks for all you do to help the American public.
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