Bank assigned life policy without my permission

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elainem

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I am currently getting a small mortgage on my home. I was going to get life insurance with one of the big banks (from which I am getting the mortgage) to provide the life cover to cover the mortgage. However, the life insurance took so long to come through, that I assigned an old life policy to the bank. The term of the mortgage is e15 years, the term left on my life cover is 15 years, to run out in Sept 2027. The life cover on my old policy is 8 times the amount of the mortgage. The new cover was supposed to come through just as an ordinary policy not assigned to anything. I didn't know anything about the assigning of this new policy to the mortgage, I never even got a copy of the policy schedule. The mortgage advisor in the bank just rang up head office in Dublin and assigned. Now I have two life policies assigned to the bank for the same mortgage. Is this normal practice? I think it is very suspect but I am not au fait with mortgages and life insurance policies. I am furious that the new life assurance policy was assigned without even asking me. The whole think would never have come to light only for a delay in issuing the cheque. Advice please!!
 
As far as i know a life policy cannot be assigned unless you signed a Deed of Assignment
 
LIfe insurance policy assigned without my permission

Hi! Dewdrop, that's what I thought.
 
May be part of the bank's block policy with the insurer in which case I think they are automatically assigned. There is nothing very dodgy about it anyway, just request that they release the assignment on the original policy, if something were to happen you they will just take what is owed anyway and the balance would be paid to your estate.
 
wbbs said:
May be part of the bank's block policy with the insurer in which case I think they are automatically assigned.
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This whole thing stinks. The person that sold you the new policy obviously took it as and assignment and took his commission from same. Why don't you cease the new Policy if the old one suffices and save the money in paying for Assurance for two Policies.
 
I don't think there was anything underhand in this, you can now just cancel one of them. I worked for bank for many years and sold many the mortgage protection/life policy etc, never received a penny commission for any of them, I was on a straightforward salary, any commission that was paid by the tied life companies went straight to the bank.
 
wbbs said:
any commission that was paid by the tied life companies went straight to the bank.
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Probably to the Manager. Years ago it was common practice for Bank Managers to hold agencies of Insurance Companies.
 
wbbs said:
I don't think there was anything underhand in this,
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Read the original post by the OP. There was already a life policy assigned to the mortgage and the Bank chose to take a charge on a second Policy. And you see nothing underhand. Sorry, but in my opinion it Stinks. I really would love to know which Bank it was as I have my suspicions.
 
That practice of managers getting the commissions finished years ago too, that was back when they were agents for the life companies, when the tied insurance companies came in that finished.

I did read the original post and the OP had applied for cover through the bank's insurer but it was taking too long so assigned another policy that they had. When the first policy was finally accepted it was automatically assigned I would think as part of the block policy. Chances are the application form had an authority to assign and they signed it.
 
Well in the pursuit of decency, the Bank should have told the borrower of the duplication and advised them. I think she would be best to stick with her own original Policy and tell the Bank to take a hike. And in case you thought one can always trust a Bank read the papers for the past three years. You are right. They really are not that fussy in who they rip off.
 
you're 3.5 years too late on responding here! but to answer your question there would be no basis for a refund. The OP applied for the cover. They said it too a while but they never indicated they sought to cancel the application. Once a life policy is in force you couldnt argue dual cover and a refund be due like motor or household because if the person had died both policies would have paid out the full amount.
 
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