Help! Need advice... signed an insurance contract and now broker is going back on it

A

antkentris

New member
Hey everyone,

I have a little problem here. I got scooter insurance with Carolyn Maugeri, they were great, but it turns out the Rep put my age wrong in the system. Now, my 70 a month insurance is now 180 dollars! I asked the agent multiple times if everything was ok, and if everything went through ok, since I was skeptical since there's was lower than everyones else's quotes. I went in to sign, asked once more, and signed.

Now they called me yesterday telling me that they had made a mistake.

My question is, are they allowed to do this? I signed a contract for 1 year saying this is the price I agreed upon per month per year, it's a legal contract, they can't go back on it can they?

Does anyone have any experience with this or any advice?

Thanks in advance,
- Anthony
 
Didn't the contract that you signed state how much you are going to pay per month/year?
 
Everybody says that her service is great, etc, etc...
I also had a bad experience with this particular agent.
In fact I almost sold my bike because of her.
All she had to do was call head office and confirm whether I'm capable of getting insurance or not and she never bothered.

Anyways, back on topic... If the mistake is on their side wouldn't that void the agreement?
 
Did you read over the contract before you signed it? was there any indiciation of thier error, like did it state your age on the contract? If it didn't have anything for you to know that they made a mistake, then they are the ones at fualt and thus they would be breaching the contract by 'going back' on it.... On the other hand if somewhere in the contract it does list your age and it IS incorrect and you signed it, then they can null and void the contract based on false information.
 
What you signed was an application for automobile insurance:

http://www.fsco.gov.on.ca/en/auto/autobulletins/2005/Documents/oaf1-10-05.pdf


You apply for insurance with the agent/broker, and they can commence the coverage immediately (and you will go on "binder"):

http://www.ehow.com/about_5044751_insurance-binder.html


The agent/broker then forwards the application to the insurance company head office, where the underwriting team ensures that the application is accurate. If there is an error in the application, then the company will adjust your future premium accordingly. At this point, you will have the option of paying the new higher premium or terminating the policy without penalty. I don't know for certain, but I believe there is a certain number of days that the insurance company has to underwrite the risk.
 
VifferFun said:
What you signed was an application for automobile insurance:

http://www.fsco.gov.on.ca/en/auto/autobulletins/2005/Documents/oaf1-10-05.pdf


You apply for insurance with the agent/broker, and they can commence the coverage immediately (and you will go on "binder"):

http://www.ehow.com/about_5044751_insurance-binder.html


The agent/broker then forwards the application to the insurance company head office, where the underwriting team ensures that the application is accurate. If there is an error in the application, then the company will adjust your future premium accordingly. At this point, you will have the option of paying the new higher premium or terminating the policy without penalty. I don't know for certain, but I believe there is a certain number of days that the insurance company has to underwrite the risk.
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Darn, I think you're right. Thanks a lot for the info and time! I'm trying to contact the complaint liaison officer to see if anything can be done, but it looks like they'll most likely mention what you just said.

The worst thing is that I got life insurance with the scooter insurance as well (it worked out to be cheaper this way), and on that contract it says I'm 21, and I scanned the front and back of my driver's license, so I have no idea how this guy made the mistake, very incompetent.

I HIGHLY recommend you do NOT get insurance with Carolyn Maugeri.
 
antkentris said:
Darn, I think you're right. Thanks a lot for the info and time! I'm trying to contact the complaint liaison officer to see if anything can be done, but it looks like they'll most likely mention what you just said.

The worst thing is that I got life insurance with the scooter insurance as well (it worked out to be cheaper this way), and on that contract it says I'm 21, and I scanned the front and back of my driver's license, so I have no idea how this guy made the mistake, very incompetent.

I HIGHLY recommend you do NOT get insurance with Carolyn Maugeri.
Click to expand...

Life Insurance will get you a discount on your Car insurance, but I don't think it will get you a discount on you bike/scooter insurance with State Farm. I agree that your situation is annoying to say the least.
 
antkentris said:
My question is, are they allowed to do this? I signed a contract for 1 year saying this is the price I agreed upon per month per year, it's a legal contract, they can't go back on it can they?
Click to expand...

Insurance companies can correct your insurance rates in the first 60 days if they find an error (theirs or yours) in the information or quoted rate accompanying the application. This is defined in Ontario insurance law.
 
turbodish said:
Insurance companies can correct your insurance rates in the first 60 days if they find an error (theirs or yours) in the information or quoted rate accompanying the application. This is defined in Ontario insurance law.
Click to expand...

Would this mean, we would be able to back out of the contract after we figure out that chances have been made?
 
I agree It is 60 calendar days. I had this exact same problem. I had to spend hours on the phone to get anything done. I even spoke to my insurance companies ombudsman.
They terminated my policy without penalty and opened a new policy with the same premium but correct information.
 
So, as I understand, if SF sent me renewal quote for certain amount (half-year period), and I paid first month what was said, but the next month SF did rise the monthly (it meant the half-year as well) amount almost by 20% - can I terminate that contract with no penalties? Because the amount they asking now is very different from what I agreed to pay.
 
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