Spectrum Insurance Service

Review: Spectrum told our church we would be better suited to find another insurance carrier for our needs. Upon switching, we were charged a "short rate change" fee. I believe it was called that. There is NO language in any of the documentation, policies, contracts, etc that a penalty (of any kind) would be assessed for switching - and, again THEY TOLD US TO SWITCH! When I tried to resolve the matter, they pointed me to a couple of pages in the original agreement to show where they were in bounds to charge the fee - except the places they referred to only mentioned guidelines for a refund, NOT for a penalty. The six hundred and some-odd dollars they want to charge is completely unethical in light of Spectrum having never spelled out in conversation OR documentation that such a penalty could be assessed. We sent them a letter with a pro-rated check, asking if that would resolve the matter. They CASHED THE CHECK and then sent collections after us for the rest. The whole "penalty" seemed so arbitrary. It would be like test driving a car and the dealership tells you to go to the dealership down the street for a better vehicle for your needs. Then the dealership of the car you test drove says, "That will be $400 for the test drive." You reply, "You never said there would be a test drive fee!" and their response is simply, "That's our policy. Sorry you had no way of knowing that, but we are going to send collections after you."The only difference is we didn't "test drive" Spectrum - we were loyal customers for TWO YEARS, never missed a premium. And this was how they treated us AFTER telling us to look for a different provider. Shameful.Desired Settlement: I would like Spectrum to drop the "short rate change" fee that they have no grounds to charge.

Business

Response:

RE: ID #[redacted]

Dear [redacted] -

My office received your letter dated May 29, 2014 concerning information submitted by [redacted].

Upon receipt of your letter, our office discussed the situation with [redacted] Company - the insurance carrier in the matter. After discussion, [redacted] Company has agreed not to pursue any additional premium from [redacted]. They have contacted the collection company, advised them not to further pursue and to close the file.

So to summarize - based on above - no additional premium is owed.

I agree with you and recognize that there are two sides to every story. I am pleased that [redacted] Company will not pursue the debt.

Both our office and [redacted] Company consider the account closed.