Central States Denies Credit Life Coverage After Death
on January 31, 2011 at 8:11 pmMy mother purchased a car in August 2009. She purchased Credit Life Insurance so that if she passed the loan would be paid in full. My mother was diagnosed with brain cancer in August 2010, and succumbed to the illness in November 2010.
I contacted the company and was told they would have to get her medical records and review to decide if she was eligible for the insurance. The company informed me that because my mom had taken meds for her heart she was not covered.
I have never heard of a company selling you the insurance then you die and they have to decide if you are covered….
Submitted By: M M
Location: Dallas, TX USA
I am writing this to you hoping that you will check back for a response.
I worked for auto dealers as an accountant for a total of 15 years. I have seen the many things that can happen to customers when dealing with Credit Life/A&H.
First and foremost, I will tell you that if someone is denied coverage, it happens very quickly after purchasing the vehicle. At that point, the dealership MUST provide a full refund for the purchase of the policy. So, that being said, if your mother was never issued a refund then I do not believe they can deny the coverage this policy provided.
The best action you can take at this point is to contact the dealership where the automobile was purchased. Ask to speak with either the controller or office manager. DO NOT speak with the F&I (finance) department. Ask them if the policy was denied and if it was, when a refund was issued. Hopefully the dealership will do the legwork for you in getting all of this handled and getting your mom’s loan paid in full.
If I can be of further assistance, please do not hesitate contacting me. I would like to know how this turns out for you.
Please do not allow this company to have the final word.
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