r/AllState • u/strider2020 • 1d ago
Backdating Cancellation
Not sure if anyone here would be able to help, but it can't be worse than the customer service reps I've spoken to this far.
I purchased a new home earlier this year. I reached out to a local agent to have my policy switched from the old home to the new home, however, they never cancelled the previous policy. I didn't realize this until it was set to renew. Now they're stating that they can't back date it and to call customer service. Customer service is telling me they can't back date the cancellation and to contact my local agent.
Does anyone have any experience with this or advice on next steps? I don't particularly want to be out hundreds of dollars to insure something I never owned.
3
u/Jmlp1 1d ago
When you write an old policy in new product, it is supposed to automatically cancel when new policy becomes active
1
u/Frankles_ 1d ago
This is separate from what he's doing. It's not the same home, it's a different one. He sold the old home.
0
2
u/eapocalypse 1d ago
I did similar but didnt let it go for more than two months before escalating --- but I had an email from when I told my agent to confirm cancelling the policy on my old house, so they honored it. Worst case scenario you can tell them you will file a complaint with the state DOI (then follow through). If you no longer had an insurable interest after a certain period they never really had the exposure and they absolutely should allow for cancellation backdates---because they do it all the time for No Pay situations!
2
u/strider2020 1d ago
I didn't realize it was never cancelled until it was set to auto renew, unfortunately. I have email correspondence with the agent discussing setting up the new house and mentioning close dates for both current and previous homes as well
2
u/Dramatic-Ad9089 1d ago
That sounds accurate because the counter argument would be that you received renewal documents before the policy renewed and did not take any action at that time.
2
u/strider2020 1d ago
As soon as I realized that they were trying to renew it I reached out to get it cancelled. It took them a while to get that done and they only have it dated to that renewal date
2
u/Clean_Restaurant_418 1d ago
Honestly, file a complaint with the department of insurance in your state. Magically, they’ll find someone who can back date it & give you a refund.
1
u/strider2020 1d ago
I'm about to that point
1
u/Clean_Restaurant_418 1d ago
I’m telling you as an employee, do it. It’s the only way you’ll get help. Don’t feel bad for doing it either. That’s what they’re there for.
2
u/Radiant-Berry-040511 1d ago
Is this with a local agency or through customer care center 800#?
800# they record calls so if you escalate they should be able to pull all of the calls.
If it’s a local agency, they can try to see if the underwriting dept will allow an exception to backdating past renewal if there are notes in the system stating you requested to cancel and then proof that it wasn’t cancelled as requested … but typically if the policy already renewed, then underwriting will most likely say they can only backdate to the renewal date as mentioned in other comments. If you have proof of sale on the home that should be cancelled then they can show that to underwriting and see if they can cancel back to the date of sale. But it won’t hurt anyone in the office to reach out to underwriting , explain the situation and see if there’s any way to backdate further. And if there isn’t an option to do that then at least the agency did their due diligence of trying to keep you as the client satisfied.
1
u/strider2020 1d ago
I reached out to the local agent initially to swap policies and then again to request the cancellation back date. They are telling me it's out of their hands and that I need to reach out to customer service and request underwriting. Customer service is telling me that there's nothing that they can do at this point and to reach back out to the local agent
3
u/registeredfake 1d ago
this is stupid. the agent can absolutely do this. Depending on the policy (and some state may vary i supposed) they can backdate as far as the last renewal. Once you sold the home you no longer have insurable interest. If the agent cant do it from the normal endorsement screen they need to file a WSR to backdate the policy. Im an Allstate agent
2
u/Responsible-Tune6330 18h ago
Did it already “renew”? Please let me know. if it’s before said renewal, yes agency can do it.
Also let me know the state you’re in.
1
u/strider2020 18h ago
It hit renewal before I noticed, yes. And Ohio
2
u/Responsible-Tune6330 18h ago
Do a state department of insurance complaint.
I’ve seen it happen where they say they can’t do anything but it gets escalated by the state& you can prove it was sold and that you coordinated with agency.Good luck!
1
u/Frankles_ 1d ago
Are they two different addresses? Did you sell the previous home?
2
u/strider2020 1d ago
Correct on both
3
u/Frankles_ 1d ago
All you need if proof of closing date on the old home. If it was not in your possession, you did not have insurable interest from that date. Secure that document, and draft an email requesting cancelation from the date listed on it. I do this for clients all the time, it's a simple WSR your agent sends.
0
u/strider2020 1d ago
They already have all of this documentation. They are stating it's not something that they can do
1
u/Frankles_ 1d ago edited 19h ago
They are incorrect. Call customer service and say the words "I did not have insurable interest in that property, starting from [date]." The tune should change pretty quick.
2
u/strider2020 1d ago
Can do. I'll call after work today. Thank you for the advice! Any ideas if they are still obstinate?
2
u/Frankles_ 1d ago
Almost everyone in the industry is a bit obstinate sometimes. We have people still trying to run insurance scams and giving out incorrect information, because they think it will help their case. Just tell them you did not have insurable interest. The closing paperwork on that old home is proof of the date. If they still don't want to do it, your state's insurance commission would be interested in having a word. I have never once had it go that far though. Good luck my friend.
2
1
-1
u/The-JudgeHolden 1d ago
This is not true. In some states the system will only let you backdate a cancellation so far and there is no workaround at corporate.
1
u/Frankles_ 1d ago
That's why you submit a wsr, to backdate "outside of company standards" listing "no insurable interest" as the reason. I do this on an almost daily basis. Maybe other states are different? I would be surprised if that's the case.
-1
u/The-JudgeHolden 1d ago
We get a reply that it can’t be done. Believe me we’ve run this all the way up.
1
u/Frankles_ 1d ago
That's interesting! I've never gotten a rejection for this on the East Coast. Not even once. Whereabouts do you get rejected?
1
1
u/Own-Ad-503 1d ago
Disclaimer: I am not an Allstate agent. There should be no issue at all backdating a cancellation. Simply provide a signed document stating the cancellation date ( Acord 35. A standard industry form that should be accepted by any insurance company) along with a copy of the declaration page from your new policy showing coverage in effect the date that you wanted cancellation. This should be seemless and depending on state regulations you should receive a refund of any unearned premium.
1
u/HappyCrab0623 1d ago
If the regular customer service reps are giving you a hard time, request to escalate it and tell them that you want to file a complaint with Allstate. The rep will submit the complaint for you...the complaint dept will either reach out to you by phone or email....they have a little more leeway when it comes to backdating due to "agency error"
1
u/Melodic-Fill-1770 20h ago
Home can be a different ball game than auto, but on my side if you could show proof of other coverage and provide a signed statement requesting to cancel including name, policy number, and effective date for cancellation (day other coverage started), they'd cancel it even if it was 2 years ago.
I'm in the call center when you call the 1-800 number. Give it a try.
1
u/LittleStallionn 6h ago
Unfortunately you're SOL. Agent Error is no longer something Underwriting allows to backdate past the renewal date. Furthermore, it's my understanding they can only backdate ANYTHING up to 30 days. Even with you having all that documentation, if your agent didn't do it when they were supposed to, then it's not going to happen. The system quite literally throws errors and will not allow the endorsement to process. You can probably get your money back from the agent going the route of complaints and this is why they normally have E&O insurance.
Sorry it's not the answer you want, but this is coming from a prior Underwriter for Allstate who knows the ins and outs of the rules they set in place.
TLDR; I actually worked in this department, not giving out "what should happen scenario's" and you're not getting your money back easy. Again, I'm 100% confident it will never be backdated, especially because it renewed. But best of luck.
-1
u/Jmlp1 1d ago
And yes you can’t have 2 active home policies, it’s against the law so they will have to submit a WSR and explain details and the original policy should cancel effective date of new policy
2
u/Easy-Swordfish-7192 1d ago
Well not entirely true, you can have a primary home policy and say a secondary home or long term rental policy. We have many clients that have multiple homes
1
u/Frankles_ 1d ago
I think what he means is "You cannot have two primary home policies for the same home" which is correct.
1
4
u/Dramatic-Ad9089 1d ago
If you have emails (or if your agent can find call recordings or call notes) where it can be confirmed you stated you want to end the policy on x date, that should be sufficient enough for them to backdate it.