ComplaintsforConstellation Insurance Inc.

• Initial Complaint

  02/16/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Ohio National now called Augustar Life suspended my Life Insurance account after Augustar made an error. This has happened repeatedly since I turned 60. I previously filed a complaint with the Missouri DCA against Ohio Nat'l. They are claiming I owe $140.58 for Dec 25, 2023. A Dec 25, 2023 payment of $192.63 was cashed by Augustar on 12/11/23 (document enclosed). They arbitrarily decide not to accept payment or change the amount due. This time they admitted it was their error, still suspending my account. They refuse to provide a detailed breakdown of the billing. Due to their suspension, I can not view the documents on my account and see the bills, payments etc. They want money before they will provide me with the information I am asking for. Before it was $140.58, now it is $343. I do not have an agent any longer as both have left the company, and have never been assigned anyone new, not that I believe it would matter. No one pays bills without seeing what they owe, what they have paid and how it is broken down. I have had this policy since 1998, and I believe this is designed to drop my policy and me from their roles due to my age.

  

  Business response

  02/22/2024

  Please see attached.

  

  Business response

  03/12/2024

  Please see attached. 

  Customer response

  03/18/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ** ********* and have determined that this does not resolve my complaint.  For your reference, reasons for rejection are included below.
  
  Regards,
  
  ***** ********

  Augustar has claimed that they sent a detailed billing. I asked for a complete billing beginning at December of 2023 showing my payments, their bills, and how they determined the grace period amounts. I have also asked in the past for a payment which would keep the policy in effect without the grace period notices. My policy was never assigned a new agent after Mr. ****** left, therefore no personal contact was made with me. The way this business has handled my policy after I turned 60 has been a nightmare, and I still maintain they wanted to cancel me at that point. They have held my information from me and made it impossible for me to look at things on my own to verify what they are telling me. I again state I want the policy reinstated and I want the information on a monthly payment to keep this policy in effect without these arbitrary grace period notices.

• Initial Complaint

  08/22/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On July 22, 2023, ***** & ****** ******* submitted a 1035 Exchange of their whole life policies from Ohio National to Ameritas Life using life insurance agent Olivia McGraw with Unbridled Wealth. At the time, Mr & Mrs ******* had a large gross cash value and loans out on each of their policies. It was their desire to have these loans assumed by Ameritas in their new policies. However, when Ameritas submitted the 1035 paperwork to Ohio National it did not state whether the loans should be assumed or extinguished. Instead of asking, Ohio National extinguished the loans causing a taxable event for the Marsdens. As soon as this was realized, I reached out to Ben G****** and Sandy A**** to have this reversed and have even provided signed Loan Assumption paperwork by the clients. Via email, Mr ******* has been unhelpful and just stated they aren't going to make any changes. He has refused to answer why they won't make this change other than some version of 'because we don't have to'. Considering this was the clients original desire, paperwork has been provided, and it has no financial effect on Ohio National I am requesting this be immediately resolved and the 1035 include the assumable loans which Ameritas is willing to receive.

  

  Business response

  08/28/2023

  Please see attached.

  Customer response

  09/01/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ** ********* and have determined that this does not resolve my complaint.  For your reference, reasons for rejection are included below.
  

   

  You are still not answering why you wont reprocess the **** paperwork… it appears your are insinuating that because the previous agent submitted a BBB complaint and Ohio rushed the ****, that you are not going to reprocess the paperwork. So would it be fair to say you are punishing the client because the agent asked for a rush via a BBB complaint?
  
  You stated in the BBB response that Ohio does ****** in under 30 days. You are probably wondering why we did a BBB complaint to rush the Marsden’s 1035… it is because the last 1035 exchange we did with Ohio National took 8 months.
  
  That being said, I think it is absolutely valid that we went straight to this action with the ********s because of how long Ohio National withheld the 1035 for our other client.
  
  You have responded multiple times, but have yet to answer my questions and seem to continue to avoid answering:
  
  WHY ARE YOU NOT CHOOSING TO DO WHAT IS IN THE BEST INTEREST OF THE CLIENT AND REPROCESS THE 1035 PAPERWORK?
  
  You have stated you don’t think you are required to, but why are you choosing not to?
  
  ******** *****
  

  

  Business response

  09/11/2023

  Please see attached. 

• Initial Complaint

  08/02/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  We are working with clients to 1035 Exchange their policies into a new mutual carrier. We’ve submitted all the paperwork required weeks ago to have this exchange happen quickly. As of 8/1/2023, the clients we’re working with are expecting to close on a new home in 30 days and need this money immediately and be well established in their new policies in order to take loans from their new carriers. We need their 1035 Exchange to happened today so their money is available for closing. This Cash Value is in excess of $500,000. Given our company’s past experiences with this process taking excessively and unnecessarily long (9 months prior experience, as well and 3-5 months for others), we need Ohio National to expedite their exchanges in the interests of clients who have faithfully paid their premiums for over eleven years. Without a swift resolution we will be seeking legal action on behalf of our clients. Policy #s: ******* * ******* 

  

  Business response

  08/04/2023

  Please see attached. Thanks! 

  Customer response

  08/08/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ** ********* and find that this resolution is satisfactory to me. 

  I appreciate your assistance in the matter. I also wanted to commend the expedited action Ohio National took on behalf of the clients. They truly heard the need and went above and beyond to make sure the situation was resolved in their favor. 
  
  Kind Regards,
  
  ****** ******
  

• Initial Complaint

  03/21/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I owned an Ohio National whole life insurance policy for many years. The agent had misrepresented the nature and availability of the cash value & death benefits, to induce us to buy the policy, which we learned later. At his suggestion, we had withdrawn cash a few years ago, which triggered interest & reduction in death benefits. We had first thought the cash value was ours to use, akin to a savings account. Our agent disassociated from Ohio National, and we never did have another local agent, despite asking the company more than once. After numerous conversations with the company directly, via email & phone, over a couple years, we concluded Ohio National was not truthfully communicating about the cash value & death benefits. We could not get straight-forward or consistent answers to our questions, and often we had to wait a long time for any response. I can provide numerous details about various specific misrepresentations and poor treatment over the years. Eventually, we concluded we needed to just surrender the policy and cut our losses. I specifically asked at least 3 different times, of at least 3 different people, whether there would be any tax consequence to surrendering the policy, and each time I was assured that there would be absolutely zero tax consequence, because of the type of policy and because our contributions still exceeded the cash that would be paid out to us. Relying on this, we surrendered, but it took them months to pay. Then, we received 1099s for taxable income & interest! I expressed our frustration but was ignored again. Eventually a courteous manager called me, about February 16, and after our conversation she promised to provide information to help explain the issue. She asked for a few days "not as a delay tactic," but as of today, 5 weeks later, I have still not received any info or other contact. We were lied to going into the policy, and lied to getting out of the policy, and along the way.

  Customer response

  03/23/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, reasons for rejection are included below.
  

  Awaiting the business' initial response.

  
  Regards,
  
  ******* ****
  

  

  Business response

  04/03/2023

  April 3, 2023
  
  
  ***** ********
  Marketplace Resource Consultant
  Better Business Bureau
  
  
  Re: ID Number: ********
  Complainant: ******* ****
  
  
  
  
  Dear *** ********:
  
  
  We received your correspondence regarding ******* ****** complaint in regard to the life insurance policy,
  issued by The Ohio National Life Insurance Company. Thank you for the opportunity to respond.
  
  
  *** ****** policy and illustration contained information explaining that the policy’s cash value could only be
  accessed through policy loans, which included an interest charge, or through a withdrawal that would decrease
  the death benefit.
  
  
  *** **** did not ask Ohio National for a taxable gain quote in 2022, prior to surrendering his policy. *** ****
  asked for and was provided with a taxable gain quote in 2021. The 2021 taxable gain quote provided that if ***
  **** surrendered his policy in 2021, there would be no taxable gain on the policy. However, in the year plus time
  from when the 2021 taxable gain quote was sent to *** ****, to the time he actually surrendered the policy in
  2022, the cash value of the policy outgrew the premiums he paid on the policy, causing there to be a taxable gain
  on the surrender in 2022.
  
  
  In addition, *** **** notes that the surrender request payment was delayed for several months, and based on
  that he should receive additional compensation. Ohio National’s normal processing time for a surrender request is
  under 30 days. We strive to meet and exceed that customer service standard in all surrender requests, however,
  due to a recent increase in the volume of replacement and surrender requests, we were unable to process ***
  ****** surrender request within 30 days.
  
  
  *** ****** policy, however, provides that Ohio National may wait to pay the cash value of a surrender request
  for up to six months after it receives Notice of the request. If Ohio National waits more than 29 days to disburse
  the cash value, after receiving Notice, the cash value will bear interest at a rate not less than the Values
  Calculation Rate as shown in the Policy. In this case, Ohio National made the surrender payment within the six-
  month time frame, and included interest.
  
  
  Based on the foregoing review, we are not in a position to refund *** **** additional funds for tax liabilities.
  
  
  I trust that I have fully responded to the concerns raised by your correspondence. Should you have any
  additional questions, you may reach me by email at **************************************.
  
  
  Sincerely,
  
  
  /s/ Benjamin M. G******
  
  
  Benjamin M. G******
  Assistant Counsel
  **************************************

  Customer response

  04/12/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, reasons for rejection are included below.
  
  Regards,
  
  ******* ****
  

  
  

  
  

  The letter from Ohio National's counsel is very reasonable but it does not address most of the issues, including my requests in April 2022 to confirm there is no tax liability for withdrawing the funds.  I have attached another copy of the information I had sent in support of the complaint, including copies of email threads.  The response from Ohio National focuses only my request in 2021.  It does not acknowledge my request in 2022, nor does it address the misrepresentations about the nature of the cash value, death benefits, etc.  There has been poor and inconsistent communication, and misleading claims about the product, that should be corrected for future clients.

  

  Business response

  04/17/2023

  April 17, 2023
  
  
  
  
  ***** ********
  Marketplace Resource Consultant
  Better Business Bureau
  
  
  Re: ID Number: ********
  Complainant: ******* ****
  
  
  
  
  Dear *** ********:
  
  
  We received your correspondence regarding ******* ****** follow-up to his complaint. In his follow-up,
  *** **** provides that Ohio National’s response did not resolve his complaint. *** **** alleges that he asked
  Ohio National, in April 2022, to confirm that there would be no tax liability for withdrawing money from the
  policy and that Ohio National did not address this allegation in its response. He also provides that Ohio
  National did not respond to his allegation of misrepresentation.
  
  
  We reviewed our files and note that *** **** did not ask Ohio National for a taxable gain quote in 2022,
  prior to surrendering his policy. *** **** did request a taxable gain quote in 2021. *** **** assumed that if
  he withdrew money from the policy in 2022 there would be no taxable gain, because there would not have
  been a taxable gain in 2021. *** ****, however, did not ask to verify that assumption with Ohio National. As
  Ohio National previously provided, “*** **** asked for and was provided with a taxable gain quote in 2021.
  The 2021 taxable gain quote provided that if *** **** surrendered his policy in 2021, there would be no
  taxable gain on the policy. However, in the year plus time from when the 2021 taxable gain quote was sent
  to *** ****, to the time he actually surrendered the policy in 2022, the cash value of the policy outgrew the
  premiums he paid on the policy, causing there to be a taxable gain on the surrender in 2022.”
  
  
  In addition, *** **** provides that Ohio National did not respond to his allegation regarding
  misrepresentation. We reviewed our files and found no evidence of misrepresentation in this case.
  
  
  We also note that *** **** filed a complaint with the Ohio Department of Insurance. We responded to that
  complaint on April 3, 2023, and provided *** **** with additional information in our response.
  
  
  Based on the foregoing review, we are not in a position to refund *** **** additional funds for tax liabilities
  and believe that we have adequately responded to *** ****** complaint.
  
  
  I trust that I have fully responded to the concerns raised by your correspondence. Should you have any
  additional questions, you may reach me by email at **************************************.
  
  
  Sincerely,
  
  
  /s/ Benjamin M. G******
  
  
  Benjamin M. G******
  Assistant Counsel
  **************************************

  Customer response

  04/24/2023

  Better Business Bureau:

  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, reasons for rejection are included below.

   

  I appreciate the thorough review of Ohio National's counsel, but the 2022 request I refer to was by phone, as I previously indicated.  I also asked by email in April 2022, to which I received no response either way.  Moreover, despite required boilerplate language delivered in policy documents after the decision to purchase insurance, the basic sales pitch was indeed that the accumulated cash value was our own savings account, enabling me to "bank on yourself" (exact language used) and / or use as a supplemental means of retirement.  These representations were misleading at best, and also relate years later to the tax representations of 2021 and 2022 (since there should be no tax consequences for accessing one's own savings account, if the cash value was indeed our own savings, which the company later acknowledged was untrue).  I recognize that the industry is too entrenched, and the insurance company will never investigate the phone calls and agent conversations, nor can the company admit that its sales training is based on a fundamental misrepresentation of its product to attract insureds.  Therefore, I understand that this claim will remain unresolved.  Thank you for your time.

  
  Regards,
  
  ******* ****
  

• Initial Complaint

  02/09/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  We currently own several Whole Life Insurance policies with Ohio National and are having two huge issues: 1) We did not want to pay into the Paid Up Rider this year and were told on the phone by Kelly (Ohio National Customer Service Rep) on January 27, 2023 that we had 60 days from the Policy Anniversary to submit a rider removal form to not pay into the rider this year. Ohio National took a loan from our Cash Value even though the policy has an assignment on it and we did not give consent. We were told it would be reversed and we needed to submit the rider removal form by February 18th. We submitted the rider removal form on January 27, 2023. We were just told today that the rider removal was not accepted and should have been sent within 30 days of policy anniversary and the loan wont be reversed. This is unacceptable. 2) We have been trying to **** Exchange this policy since August 30, 2022 and each time we submit a form, 2 weeks later we are told something is wrong or something else is needed. We promptly provide the requested docs and once again have a delay and then a reply for something else. Now that it has been submitted 'correctly' we are being told it will be another 90 business days. We have over $2M in Cash Value that is now going to be inaccessible for 90 business days . This is also unacceptable. This would mean we have $2M+ in funds held up for over 9 months. We need this expedited and sent now. Without a swift resolution we will be seeking legal action and moving all other policies we own with $Ms in Cash Value. We need the APL loan reversed and the **** expedited immediately. Policy # *******

  

  Business response

  02/16/2023

  February 16, 2023
  
  
  ***** ********
  Marketplace Resource Consultant
  Better Business Bureau
  
  Re: ID Number: ********
  Complainant: ******* ******
  
  
  Dear *** ********:
  
  We received your correspondence regarding ******* ******’ complaint in regard to the life
  insurance policy, issued by The Ohio National Life Insurance Company. Thank you for the
  opportunity to respond.
  
  The policy contained an automatic premium loan as its non-forfeiture option. The automatic
  premium loan was triggered when the premium for the rider was not paid. Per the policyowner’s
  request, we removed the rider from the policy after the policyowner completed a rider removal
  form. In addition, Ohio National reversed the automatic premium loan payment made toward
  the rider and refunded the rider premium payment. Per the policyowner’s request, Ohio
  National made the accommodation to remove the automatic premium loan as of December 18,
  2022.
  
  Ohio National informed *** ******, and his new insurance company, that Ohio National had
  not received the proper **** exchange request paperwork in good order on several occasions.
  After speaking with *** ******’ associate on Friday, February 10, 2023, *** ****** sent the proper
  paperwork, in good order, to Ohio National later that day. We processed the **** exchange
  request two days after the automatic loan payment was reversed on February 13, 2023. The
  new insurance company can expect the **** proceeds to arrive within 15 business days.
  
  I trust that I have fully responded to the concerns raised by your correspondence. Should
  you have any additional questions, you may reach me by email at
  **************************************.
  
  
  
  Sincerely,
  
  /s/ Benjamin M. G******
  
  Benjamin M. G******
  Assistant Counsel
  **************************************

  Customer response

  02/17/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ******* ******
  

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩