Complaint Category: Sales presentation misrepresented the service
Complaint: Claim to be selling health insurance which turns out to be a scam
Called number from web site to apply for health insurance. Was told that the policy that they named 'Standard' was two parts, health insurance with 0 deductible, 3 free office visits, after that 40-60% coverage, lab and xray covered75%. The second part was a life policy. The life part was legit, it was Standard Life who cancelled our policy upon request and promptly mailed a refund. The health insurance ended up being 'Fidelity' which was not legit. Phone numbers did not belong to the investment company that we know. Refuse to cancel policy unless a note is signed by applicant and their spouse stating they want policy canceled. Being afraid to fax signatures, in fear they would cut and paste onto other documents, called the 'agent' who told us that we cant cancel the $67.38 being taken out of our checking account. That if we blocked their withdrawals they would would keep billing through mail and it would keep piling up until we lost everything including our home. We needed health insurance and ended up with nothing. Not even an insurance card to show provider. All phone numbers collected were dead ends. The Fidelity company told us that our agent was a ********* ******* with a phone of XXX-XXX-XXXX. Needs to say all messages go unanswered
Initial Business Response
There are several points to clear up in addressing the issues at hand. First, Standard Life and Accident Insurance Company was slated to administer all health benefits, not life. Concurrently, Fidelity Life Association was chosen as the administrator for the life benefits, not health. Also, they have no affiliation with the investment company of a similar name.
On 9/4/2014, one of our CSRs ******* spoke with the customer at length regarding this particular evolution of enrollment and cancellation. Several days after enrolling, this client called wishing to cancel and *******, per compliance procedure provided the customer service numbers for both Standard and Fidelity. Company policies mandate that the insured cancel directly and use the necessary procedures to do so. In this case, it was conveyed to our CSR that the client (or client's mother) called and canceled the health benefits through Standard within the 30 day free look period, though they did not cancel Fidelity. Client was then charged again as the policy was still in force. Yesterday, Fidelity informed the client of the necessary procedure for cancelling the policy. Following that, the client placed a call to ******* and ******* confirmed the procedure for cancellation. After review of the recorded conversations, it should be known it was never stated that the client would "lose everything". Our CSR reiterated several times the importance of following cancellation procedures in order to effectively terminate the Fidelity Life benefits.
This case was escalated internally to a Senior CSR, who placed a call to the client at 4:08pm, PST and left a voice mail with a call back number. This call has yet to be returned.
In conclusion, it is important to remember that specific cancellation procedures are set by the insuring companies and must be followed by all insureds. As we believe in all parties involved maintaining a level of accountability and strive to keep all aspects of the insurance package as transparent as possible before mailed fulfillment packages are received, customers are made aware of all products purchased, price points, applicable fees, cancellation periods, customer service phone numbers and any other pertinent and helpful information during a recorded verification performed as they conclude their purchases. This is standard procedure with every customer and this case is no exception. If the client would like to reach out the Senior CSR who contacted her and bring this case to a close, she is invited to do so Mon-Fri, from 8am-5pm, PST. Thank you
Initial Consumer Rebuttal
(The consumer indicated he/she DID NOT accept the response from the business.)
The health insurance is most certainly not the coverage stated by the agent and verified by me on their 'recorded'call. Upon reaching an agent, I was most certainly threatened by the agent who stated that if we stop automatic withdrawal, they will send paper bills which will keep piling up until we lose everything. Also this call was made well past normal business hours and yes we are aware of the time change. Yes, the company did contact me, but it was yet another agent asking me if I was interested in buying health insurance. I was told by yet another agent that the only way to cancel was by our signatures on a plain sheet of paper. After expressing my concern of the signatures being transferred onto a different document, the agent had no comment at all. What kind of company has no legal cancellation form and refuses to produce one. In answer to their claim, when the call was made to cancel the insurance no other phone number or company name was given. They simply stated that all withdrawals would be stopped and a refund mailed.Yes, they provided phone numbers, but a computer search of these numbers show them listed under the website name. All calls are answered by an individual first name, never by a company name. As for the life insurance they claim is $67.35, it is only an accidental death policy which we were never told. We were also told that there was no way to buy the health insurance without also buying the life insurance, after we stated that we had plenty of life insurance and not in need of any more. All we ask is for a legal cancellation form and the return of the premiums as we did make the phone call to cancel our policies within the stated 30 days. Since we were told that the two policies were sold together as one why would we think that more phone calls were needed.
Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
The client was directed to provide a letter of cancellation on a plain sheet of paper. Client requested a formal cancellation form, as the company is untrustworthy and the client was fearful of signing a plain sheet of paper. What kind of company has no formal cancellation paper?
The packet sent by the company includes two forms, one a conditional receipt, and the other is the actual application. Both clearly direct the client to sign and date, which has never been done.
Yes, the client received a call from the company, but it was not a senior CSR, it was yet another salesman asking if the client wanted health insurance.
The health insurance packet the client received does not anywhere verify the quotes on coverage given by the phone rep. It actually states in bold letters "This policy provides limited benefit coverage. It is not designed to cover all medical expenses and it is not a major medical or comprehensive healthcare policy." That is not what was stated to the client. They stated the client was fully covered from the application date. The packet states "no benefits are payable for sickness during the first 30 days following a covered person's effective date." Does this policy sound like the one quoted to the client- 0 deductible, 3 free office visits per year, 40-60% coverage after the 3 visits, lab and xray 75% coverage.
The following phone numbers are the numbers given to the client during the recorded application, ******* ****** XXX-XXX-XXXX and customer service XXX-XXX-XXXX.
Upon cancelling the automatic withdrawal from the client's bank account, they received a bill for 3 months prepayment of the 'insurance'.
This is a fraudulent company and they are harassing the client.
Final Business Response
As it happens, I have just received a copy of Fidelity Life Association's cancellation procedures. Please see the attached.
I feel this complaint would be more appropriately directed to Fidelity Life as our role was simply matching the customer to a product of interest. After the initial enrollment, Fidelity was responsible for billing the customer for their product. As stated in the attached, the customer had ample time cancel the product and receive a refund if the product didn't meet her expectations once she reviewed the mailed fulfillment.
I believe that because she worked with our office to complete an application, she believes we (Name My Premium) are responsible for billing her. It may be beneficial for her to check her bank statements to see the funds were actually withdrawn by Fidelity Life Association.
Thanks again for your time on this and let me know if there is anything else I can do to help close this complaint.
Complaint Resolution: BBB determined that despite the company's reasonable effort to address complaint issues, the consumer remained dissatisfied.