Simple Letter Solves Problem

Allan Chapnik

by Toronto Lawyer Allan Chapnik: Yesterday, over the phone, a potential new client told me that his mother had passed away and the insurance company refused to pay out on the credit insurance she had on a loan from the bank. They said it was because she died within 12 months of the loan (and the matching insurance) being granted. The problem was, the loan only had a 12 month term, and was in fact the third or fourth 12 month renewal of an older loan. It sounded like a great way to collect insurance premiums but never pay out.

I met with the guy today. He brought the insurance policy with him. It turns out it has a perfectly fair provision for loan renewals - only the insurance adjuster wasn't aware the loan was a renewal, and didn't know to apply it. So, instead of taking him on as a client, I helped this guy write a nice letter to his insurance company pointing out their oversight. I fully expect the insurance money to be paid out right away.

I've never been so happy not to be retained.