5 Star Life Insurance Company Inc

Review: I applied for a quote from 5 Star to see if I could afford a monthly premium that they will have offered. Instead of getting a quote they signed me up and auto withdrew the full premium from my account even though I signed up for direct billing. They withdrew money from my account without my permission. Through my independent agent's help and almost a full month of dealing with the hassle that 5 star had caused, I was able to cancel my policy and be refunded the first months premium. However as soon as I received my refund check, 5 Star activated my policy again and withdrew another premium amount. They do unauthorized transactions and their customer service is awful! They were not cooperative and every time I did whatever they told me I needed to do, they found something else that needed to be done. I believe their whole goal is to make cancelation such a hassle that people don't even worry about getting their money back!Desired Settlement: I want them to refund all my premiums and send me a written personal apology for all the stress and hassle that they have caused both me and my agent.

Business

Response:

March 5, 2014

Dear **. [redacted]:

As a follow up to our telephone conversation on March 4, 2014, this letter serves as confirmation of my findings.

[redacted] referred to Account Number [redacted] in his complaint and recorded his physical address as [redacted]. **. [redacted] does not have life insurance coverage with 5 Star Life Insurance Company. In fact, he is the writing producer for the policy owner [redacted].

My response dated February 20, 2014 was relative to the correct owner.

If additional information is required, please do not hesitate to contact me.

Respectfully submitted,

Review: I CONTACTED THIS INSURANCE CONCERNING MY DECEASED BROTHERS INFORMATION ON THE NOVEMBER 5TH. THEY INFORMED ME THAT THE POLICY WAS IN FORCE AND PROCEEDED WITH CLAIM. THEY SENT DOCUMENTS TO SUSTAIN THAT THE POLICY WAS INFORCE THAT I HAD TO ONLY MAKE 2 PAYMENTS TO BRING THE POLICY CURRENT. I DID MAKE ONE PAYMENT AND WAS TOLD ON THE NOVEMBER 20TH THE POLICY WAS STILL IN FORCE. I CONTACTED THEM TODAY DECEMBER 2 AND WAS TOLD THE POLICY WAS NOT IN FORCE AND HAD LAPSE BACK IN SEPTEMBER. I HAVE DOCUMENTATION TO DISPUTE THEIR CLAIM. TO THIS DATE I HAVE NOT RECEIVED ANY NOTICE OF CANCELLATION. WHEN I CALLED ON THE DECEMBER 2, 2014 THEY THEN SAID THE LETTER WILL BE COMING OUT.Desired Settlement: THEY NEED TO DO THEIR RESEARCH AND PAY THE POLICY IF DEEMED

Business

Response:

December 11, 2014Dear [redacted]:Thank you for your electronic mail dated December 3, 2014 in which you forwarded a complaint submitted by the beneficiary of the decedent, [redacted]. In [redacted]'s complaint, she alleges she was misinformed about the status of the decedents, [redacted], life insurance coverage.BACKGROUND• On August 23, 2014, [redacted] completed and signed an Individual Silver Premier Whole Life Application for life insurance coverage in the amount of $15,000.00. The monthly premiums were assessed at $44.60. A copy of the application is provided at Tab "A."• On August 23, 2014, [redacted] completed and signed the [redacted]/5Star Life Credit Card Authorization Form authorizing 5 Star Life Insurance Company to debit his credit card on the 20th of each month beginning September 20, 2014. A copy of the Authorization Form is provided at Tab "B."On September 4, 2014, [redacted] was issued coverage on his life with an effective date of September 20, 2014. A copy of the issue documents is provided at Tab “C.”On September 20, 2014, 5 Star Life Insurance Company informed [redacted] that his first credit card premium payment had been declined by his financial institution. As a result, his payment mode was changed to monthly direct billing. A copy of the correspondence is provided at Tab "D."On September 20, 2014, 5 Star Life Insurance Company issued [redacted] a Life Insurance Account Statement for the period September 20 through November 20, 2014. Premiums due totaled $89.18. A copy of the Statement is provided at Tab “E.”On October 5, 2014, 5 Star Life Insurance Company issued [redacted] a Life Insurance Account Statement alerting the insured his life insurance account was past due in the amount of $89.18. A copy of the Statement is provided at Tab "F."On October 21, 2014, 5 Star Life Insurance Company issued [redacted] a Life Insurance Account Statement alerting the insured his life insurance account was past due for the period November 20, through December 20, 2014 in the amount of $133,77. A copy of the Statement is provided at Tab "G."On November 4, 2014, 5 Star Life Insurance Company issued [redacted] a Life Insurance Account Statement alerting the insured his life insurance account was past due. The amount owed was $133.77. A copy of the Statement is provided at Tab “H.”On November 10, 2014, 5 Star Life Insurance Company incurred a contestable claim reported by his sister and beneficiary, [redacted]. A copy of the Report of Death form is provided at Tab “I."On November 10, 2014, 5 Star Life Insurance Company's Claims Department informed [redacted] her brother carried a $15,000.00 life insurance policy. The Claims Department provided the required forms to be completed by the beneficiary of record and, in addition, requested an original Certificate of Death. A copy of the correspondence is provided at Tab “J.”• On November 20, 2014, the Policy Accounting System automatically generated notification to the insured that coverage on his life was terminated, effective September 20, 2014 due to non-payment of premiums. A copy of the correspondence is provided at Tab "K."• On November 21, 2014, 5 Star Life Insurance Company received and accepted a credit card payment, via telephone, in the amount of $44,59. The Policy Accounting System automatically generated confirmation of the premium payment. A copy of the correspondence is provided at Tab "L."???One premium payment was debited from [redacted]'s credit card and, on the same date, reversed. [redacted] received numerous Payment Statements from 5 Star Life Insurance Company advising him that premiums were due. No premium payments were received and applied to the account. An electronic copy of [redacted]'s payment history from September 20 through December 11, 2014 is provided at Tab “M."The complainant contacted 5 Star Life Insurance Company on November 21, 2014, after the death of the insured, to determine the status of [redacted]'s account and to make a premium payment on his behalf. It is conceivable that the Policy Accounting System had not updated or the customer service representative misinterpreted the screen and accepted payment on a policy that had lapsed. The policy was 60 days delinquent. Per the language of the life insurance contract,“PREMIUMS. Premiums shall be made to Us at our administrative office. Premiums as of the Date of Issue are shown in the Policy Specifications. They are scheduled to be paid on the first day of their payment interval.”"GRACE PERIOD. Any premium, other than the first, not paid when due may, prior to the Maturity Date as shown on your Policy Specifications document, be paid within a grace period of 31 days after its due date if premiums have been paid to that due date. The policy will continue in full force during that period.""If the Insured dies while this policy is in full force, we will refund or charge premiums to effect payment to the end of the policy month in which the Insured dies. We will pay any refund to you if you are not the Insured: otherwise, we will pay it to the Beneficiary. We will deduct any charge from any proceeds."The premium payment made by [redacted] on November 21, 2014 was reimbursed.[redacted] states in her complaint that "I have documentation to dispute their claim. To this date I have not received any notice of cancellation." 5 Star Life Insurance Company encourages [redacted] to submit any additional information for review. The notice of cancellation was mailed to the address of the owner, [redacted].5 Star Life Insurance Company is still awaiting the documents requested to process the claim. Until all the required documents are received and reviewed, the claim remains open.The facts dictate coverage lapsed on date of issue for non-payment of premiums. At the time death was reported, death cannot be confirmed as the Certificate of Death has not been provided, coverage was not in force.If additional information is required, please feel free to contact me.Sincerely Yours,Mildred H. MSLSDirector, Compliance

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:Claims papers were mailed and was told verbally by your company they had been received (attached). Also a letter claiming that the policy was terminated was not mailed until December. see attached. I did receive a letter with the return check. the check was made out to my brother. I am returning the check and asked that the company resend the check in my name since I made the payment. They have responded and is waiting on me to return the check.If this policy is not in effect that is ok. My problem, is why would it take so long for the company to know this. It actually took submitting the claim to find this out. I had spoke with them several times during the process and was told the policy was active. From September to December is to long to know this. This was time consuming, and stressful to deal with during this time. The last bill of did not mention anything about a policy lapse. It seems to me that company would have accepted the payment and kept the policy enforced if the deceased was still alive. They continue to try to collect on a policy that they say was terminated back in September 2014. If my brother was still alive, would the payment had been accepted and would the policy be active.Regards,

Business

Response:

December 18, 2014Dear [redacted]:Thank you for your electronic mail dated December 18, 2014 in which you forwarded the Complainant's rejection to the response dated December 11, 2014.As stated in the December 11, 2014 correspondence, 5 Star Life Insurance Company responded to the report of death by [redacted] and forwarded to her the documents required to be completed and returned by the beneficiary of record before the claim process could begin. These materials were dated November 10, 2014. The termination letter was generated by the system on November 20, 2014. This date is relative to the effective date of coverage. Because coverage was issued on the 20th of November, the date the insured is notified is driven by the effective date of coverage. Not because a claim was filed.5 Star Life Insurance Company refunded the premiums submitted on November 21, 2014, after the death of the insured, made payable to Kevin Cotton because our system had not been updated to reflect a claim had been filed. To Speed up the process, 5 Star Life Insurance Company requested the check be returned so that it could be reissued in her name as the beneficiary. Since it has not been returned as requested, a stop payment has been placed on the initial check. 5 Star Life Insurance Company will reissue the check in 31 days.Submitting the claim did not alert 5 Star Life Insurance Company that the coverage had lapsed due to nonpayment. After 60 days delinquent, the Policy Accounting System automatically generates a termination letter as it did on November 20, 2014. The contract stipulates the applicant has 31 days during the grace period to submit premiums. 5 Star Life Insurance Company allowed [redacted] 30 additional days of coverage before termination. At that time, the status of [redacted]'s coverage reflected as active in the system.Once the claim was opened by 5 Star Life Insurance Company's Claims Department, the deficient premiums received were returned. To fully reinstate coverage, [redacted] would have needed to submit $133.77; not $44,59.The last Bill Statement did not refer to lapse but it did state specifically the amount "past due." There was no continued collection of premiums on this policy. The only premium payment received was $44,59. The question raised by the Complainant is "....If my brother was still alive, would the payment had been accepted and would the policy be active." The answer is no. The termination letter was dated November 20, 2014 with an effective date of September 20, 2014. If [redacted] had called in to reinstate his life insurance coverage, the total amount due would have been required via credit card. He would have also been instructed that any payments after reinstatement would only be accepted by automatic debit from a financial institution or via a recurring credit card.If additional information is required, please do not hesitate to contact me.Sincerely Yours,Mildred H. MSLSDirector, Compliance

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

Regards,

Review: I've carried a supplemental life insurance policy on my wife with [redacted] for more than 20 years. On her 50th birthday, the rate for the policy increased 400% making it well outside the prices of other term life insurance. Although I applied for the policy, use my social security number, made all the changes to the policy in the past, and pay the premiums they informed me I'm unable to cancel the policy. I informed Tonya, a customer service representative, that my intention was to stop paying for the policy. What an incredible level of red tape to cancel a policy. Recently did the same thing with another carrier with no problems.Desired Settlement: Cancel the policy and stop the foolish requirement.

Business

Response:

August 15, 2014Dear [redacted]:Thank you for your correspondence dated August 7, 2014, in complaint registered with the Bureau on August 4, 2013 by the above Complainant – [redacted].Per the Group Level Term Certificate language, “The rights and privileges of the insurance belong to the Owner during the Insured's lifetime. The Insured is the Owner unless a different Owner is named by you. If the Owner dies before the Insured, the rights and privileges of ownership will vest in the executors, administrators or assignees of the Owner....."The requirements explained to the Complainant by 5 Star Life Insurance Company's Customer Service Representative was, in fact, factual. The fact [redacted] was the official payor of the contributions since 1997 does not give him ownership; thus, he cannot terminate the coverage.[redacted] must submit the termination request in writing. Upon receipt and and review, the request will be honored.Respectfully submitted,

Do not do business with these people they are inept they cant get policies written correctly then they try to ask for bank account numbers for automatic withdrawal when all they need is the router numbers they screw up automatic bill payments then wait until the policy is over due until they contact you they are a very shady company they sent me a policy with over 20 mistakes including misspelling my name never even after requesting corrections did they w n me the amended copy I canceled my policy after three months live and learn if it sounds to good to be true it probably is go with a well name company stay away from companies like. This !!!@

Review: An agent from 5 Star met with my dad while my dad was smoking, yet told him "I didn't see that" referencing the smoking. My dad said that the agent told him he would get a better rate, and encouraged him to perpetuate the lie on the telephone interview. The agent filled out the paperwork as my dad's eyesight is poor, had my dad sign it. My dad wanted burial insurance, but it turned out to be a whole life policy -- my dad is 82! My dad thought he was a 'nice guy' getting him a deal. $82 monthly from his social security income for a policy that obviously will not pay. I contacted the company twice demanding my dad's money back and finally received a letter saying that my dad is at fault and that he will not be reimbursed. As per Mass. law 93A -- we are going to court.Desired Settlement: My father paid 6 months premiu** before I knew what was happening. I'm asking for all that money back based on the fact that the agent duped him in order to get a commission. When we go to court, I will ask for 3 times that amount plus court and attorney fees.

Business

Response:

April 4, 2014Dear **. [redacted]:Thank you for the March 31, 2014 electronic correspondence forwarding the February 19, 2014 complaint filed with the Bureau by the daughter of the insured, **. [redacted]. [redacted].**. [redacted] and **. [redacted] submitted a complaint letter dated February 4, 2014 to 5 Star Life Insurance Company's ("5 Star Life"] President, [redacted]. [redacted], alleging that the writing agent, [redacted], knowingly completed the life insurance application falsely and misrepresented premium rates presented to the applicant. A copy of the complaint letter is provided at Tab “A."5 Star Life responded to the complaint on February 11, 2014. [Note: The date on page 1 of the response is incorrect. It should reflect the date on page 2 --February 11, 2014.] The response was supported by the agent statement provided by **. [redacted] dated February 10, 2014. A copy of the response and agent statement is provided at Tab "B.”**. [redacted], by contract language, had 30 days from date of issue to terminate his coverage. At that time, all premiums received and applied to his account would have been reimbursed. Had he expired during this period, 5 Star Life would have honored the claim, providing the claim was valid.5 Star Life stands on its decision no premium reimbursements are owed.If you have any questions, please feel free to contact me at [703] 706-5975 or via e-mail at [redacted]. Our hours of operation are Monday through Friday, 8:30 a.m. to 5:30p.m., E.D.S.T.Respectfully submitted,

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because: I was there when the insurance agent arrived at my dad's home. I witnessed my dad smoking at that time. The agent is lying. My dad relayed this story to me in PRAISE of the agent for trying to get him a good deal -- not to tarnish him. My dad had no reason to lie. He is of a time when good business could be done on a handshake. I would also bet anything I own that he has give people "good deals" before -- not just my dad. His cases should be reviewed. I'm sure the company is basically legit -- but for the crooks they have working for them who could ruin them. This is not acceptable treatment of the elderly NOR the veterans - my dad is both. I'm wondering that if the agent's dad were treated this way and then called a liar and threatened 'fine and/or imprisonment' , how would he react and what recourse would he take?

Regards,