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Is this legal???

February 13th, 2008 at 12:54 am

I am very annoyed right now. I applied for Disability Insurance with 2 companies through an online servie called "Quote Retriever". I have not been impressed with the service at all, but have muddled through in the hopes that once a policy is in force I will be able to deal directly with the company I choose instead of them.

So, I chose the policy I wanted of the two I applied to, and they requested 2 additional documents and a check for the first month's premium. No problem. I signed and faxed the forms right away (practically had to sign over my first born, but whatever), and the lady at Quote Retriever wanted me to fill out and fax her an "Automatic Bank Withdrawal Form" with my bank account and routing number that gives the insurance company permission to auto debit my checking account each month. Well, I have worked in banking and I know that once you sign one of these forms you might as well forget having any control whatsoever over your money because the company can take as much as they want whenever they want...cause you signed that it was okay. I explained that I did not allow this and that I would set up an auto payment through my online bank myself. I did just that through my ING Electric Orange account. The check was mailed last week and received yesterday.

Today I get an email from the QR lady again telling me that the company will not put my policy in force unless I either sign the Auto Withdrawal form and allow them to take money from my account each month or pay them in full for the year. Does anyone know if this is legal? I mean, if I skip out on a payment they can just drop my coverage like any other insurance. I don't get this at all...and I am fightin' mad!

2 Responses to “Is this legal???”

  1. reflectionite Says:

    well in australia i dont know if it is legal, but i know a lot of companies give special 'offers' and you can only get that if you sign the auto withdrawl form. also with my phone bill it is a $2 charge if you dont want it automatically withdrawn from your account (which is stupid, i agree!)

    so they have a customer complain line that you can call? or is there some type of organisation that deals with unfair policies and the like?

  2. MariRDH Says:


    You are way ahead of me. Wink I just sent off an email to the QR lady asking for the name and extension of someone at the insurance company so I can deal directly with them! We'll see what kind of response I get.

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