Mortgage Life Assurance Cover Help!

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jem20066

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15
I just need some advice.
I took out a mortgage on an apartment but as I didnt earn enough on my own my dad went on the mortgage also. I had to take out life cover on my dad for 70K. I got this cover in place on signing, I was meant to get a doctors letter signed but my doctors office never sent back to form and the insurance broker issue the cover anyway,two months later my dad got a bad chest infection and he asked the doctor to see someone else and he went to see a consultant, he is ok thank god. But a couple of months later a stand in doctor must have found the orgional request from the insurance co. and sent it back containing details about the consulant visit. They have come back to me saying the are going to cancel due to non disclosure. I dont see how they can as this happened after the policy was issueed and would never have been on the form had the doctor filled it out at the time.
Im obviously fighting the co that they cant cancel this policy, but what I also want to know if they cancel this policy what will happen with the bank.
Any advice would be great thanks.
 
The big question in all this is "How did your broker manage to issue a policy if the insurance company didn't get the report back from the doctor?" How did this happen? What does your broker say?

Non-disclosure is where your father didn't disclose a material fact either on the application form or until the point where the policy was issued. Was this the case here?
 
No the consultant visit happened two months after the policy was issued he had 3 chest infections which he had put on the form. But when it reoccured again he wanted to see a consultant to make sure it wasnt somthing more serious. It wasnt but I dont think that they can cancel a policy on what happened after the date of issue, am I right?
 
Life Assurance companies are a nightmare to deal with from my recent experience.

Get a new policy put in place. And important note ring them every day till you have it.

GF had to do a medical, done the medical three weeks ago. Doctor never sent it back and Life assurance never received because doctor never paid for it. I had to bang heads together, got the life assurance company to pay for the report, so the doctor would realise it, three week delay that caused.
 
Kluivert said:
Life Assurance companies are a nightmare to deal with from my recent experience.

...

GF had to do a medical, done the medical three weeks ago. Doctor never sent it back ...
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Surely that's the doctor's fault and not the LA company's fault?
... and Life assurance never received because doctor never paid for it.
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Eh? Why would the doctor pay for it?!? :confused:
 
jem20066 said:
No the consultant visit happened two months after the policy was issued he had 3 chest infections which he had put on the form. But when it reoccured again he wanted to see a consultant to make sure it wasnt somthing more serious. It wasnt but I dont think that they can cancel a policy on what happened after the date of issue, am I right?
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If your father answered all questions on the application fully and truthfully AND there were no changes to his health between when he signed the application and when the policy was issued, the life assurance company cannot cancel the policy for something that first arose AFTER the policy was issued.

But I'm still confused as to how your broker managed the following feat, from your original post. "I was meant to get a doctors letter signed but my doctors office never sent back to form and the insurance broker issue the cover anyway"

My experience is that if a life assurance company requests a doctor's report, they will not proceed until they get it.
 
Kluivert said:
Life Assurance companies are a nightmare to deal with from my recent experience.

Get a new policy put in place. And important note ring them every day till you have it.
Click to expand...

This would seem hasty if the existing policy is valid and jem's father can prove that the alleged non-disclosure is a misunderstanding over dates.

Kluivert said:
GF had to do a medical, done the medical three weeks ago. Doctor never sent it back and Life assurance never received because doctor never paid for it. I had to bang heads together, got the life assurance company to pay for the report, so the doctor would realise it, three week delay that caused.
Click to expand...

I presume you mean that the doctor was never paid for it and so didn't send it back to the life assurance company. Accepted practice for life assurance medicals is that the company pays the doctor after they have received the report. A rare few doctors insist on payment first. Unless the doctor tells the life assurance company that they want payment up-front, the company won't know this and therefore can't be blamed for any ensuing delay.
 
The reason they issues the policy is my friend is the broker, when we filled out the form my dad had not been referred to a consultant. The cover was issued on the same date as the referral, had his doctor filled out the form on the date it was sent and I had asked him (hes a bit of a pain) then none of this would have been in the report. I didnt know I had to pay the doctor and I never did. But I dont think this is why its my doctor didnt fill it out. I think it was just overlooked.
I mean the policy is expensive enough I really dont want to have to get a new policy as Im sure that would cost me a lot more now.
If they cancelled the policy can the bank do anything?
 
jem20066 said:
The reason they issues the policy is my friend is the broker, when we filled out the form my dad had not been referred to a consultant. The cover was issued on the same date as the referral, had his doctor filled out the form on the date it was sent and I had asked him (hes a bit of a pain) then none of this would have been in the report.
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Something's not right here. Timeline for life assurance applications is as follows: -

(1) Life company receives application.
(2) If they want a report from the applicant's GP, they write to the GP looking for it.
(3) If they don't get the report back from the GP (for whatever reason), they won't approve the application and no broker can over-ride this and issue cover.

Your broker seems to have issued a policy even though the doctor hadn't returned the report to the life assurance company. I've no idea how s/he did this.
 
I would also like to know how your friend, the broker issued the policy. Surely the life company issues the policy? Did the broker provide some sort of letter of assurance.

If you and your dad have been fully upfront here, then you won't have a problem. If you have hidden information or if your broker has issued a policy which he should not have done, then it seems that the company is right to cancel the policy.

If you have been honest and if you did not make a mistake, then the life company will not cancel the policy. If they do, you can always go to the Ombudsman.

Brendan
 
Hi all, no one seems to be answering the gentleman's question. What he simply wants to know is if the Lender /Bank will do anything (such as imposing penalties ETC) if his life policy was cancelled. No disrespect to anyone but he does not seem to be getting any joy regarding this question.
 
Hamek said:
Hi all,
no one seems to be answering the gentleman's question. What he simply wants to know is if the Lender /Bank will do anything (such as imposing penalties ETC) if his life policy was cancelled. No disrespect to anyone but he does not seem to be getting any joy regarding this question. [/b]
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This is the whole point - if the original poster/his father/his broker have been completely upfront with the life assurance company about the life assurance application, then the policy cannot and will not be cancelled, therefore the lender/bank will have no reason to take any action.
 
There is something wrong here.

When the life proposal form is completed and underwritten, based on the answers to the medical questions asked, the call is made by the life company as to whether or not further information is required. If further information is required a medical report is sent to the applicants doctor.

If the life company requested a medical history report, regardless of any delay that would occur because of it and regardless of a delay in mortgage drawdown, they would not proceed without it.

The only thing I can think of that could have happened and this is just my guess would be that the underwriter requested the report, the reason for the report was questioned and based on further information received, the report was then waived. To be honest it would seem unlikely this would happen.

I suppose a mistake could have been made when the proposal was being underwritten and the report was waived in error but I doubt the life company can then withdraw the policy based on their error.

What have the life company said about this other than non disclosure?
 
The broker is telling me that they cant cancel the policy as they should never have had this information. And they cant cancel the policy for something that happened after it was issued. Got a letter from my dads doctor clarifying the dates etc and sent it to them. Ill see what they come back with.
Might seek to have my dad removed from the mortgage if things dont work out as Ive been paying it for a year now and Im earning 15K more than I was at the time which allows me to save an extra 650 euro a month too.
 
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