AAA Life Insurance

I took a policy with AAA back in July of 2006. I was told that this policy was a Return on Premium Policy; which was explained to me that if I decided for any reason to cancel my policy, AAA would refund the premiums I had paid in. I acknowledged that I was interested so AAA sent a representative to my office to perform a physical exam. The lady who came also reiterated that the policy had a Return on Premium.

In April of 2011, I incurred expenses that has made it had to sustain this policy. So I called the insurance company thinking I could maybe borrow from it and was told that I only had the option to cancel the policy and get my premium refunded. In July, I called AAA again to ask how this process would work. At that time, I was told I would need to send in a written statement or send back my monthly bill with cancel written on it and to make sure I signed and date it. I did so on July 25th.

On July 30th, I called to see if my cancellation notice had been received and if there was anything else I needed to do. I was told, at that time, AAA had not received it but I could wait until August 18th and just let my policy laps. I decided not to wait so I faxed a second notice. I called the beginning of August and was told that I would receive a notice in the mail. I got a notice today, August 12th, stating that AAA had canceled my policy on June 18th and would not be sending me a refund.

I called and spoke with a representative who informed me that I had to have the policy for 6 years before they would refund me. I explained that I was not informed of that at anytime. I specifically called to find out about canceling the policy and getting a refund twice before I canceled, and at no time, did anyone told me that I wasn't eligible. I was lead to believe a refund would be given. If someone had told me this, I could have made a way to keep my policy until next year which would have met the criteria. I really feel duped by AAA.

About 8 years ago, we purchased 3 life insurance policies, one for my husband, myself, and one for our then 10 year old daughter. I have been paying monthly for the premiums, and my husband, and my account have been gaining interest and money, we can borrow against. Last month, my daughter's policy did not come out of my checking account, and I contacted AAA Life. who told me that the policy was under funded when it was written, and that in 2008, 2 years ago, they were supposed to contact me, and tell me that it needed to be changed.

This never happened. We are not told that we have to pay $146.00 to have the policy updated, or re-write the policy, however the money I've invested into the policy will be gone, along with any interest that was supposed to be there over the last 8 years, and that this has happened to a lot of people, and only found due to an audit. I was one of the lucky ones, because I only have to pay $146.00, while others have to pay thousands.

When I talked to my rep and asked her who I should contact at the corporate offices, she gave me a name and phone number, and told me that it would not be a good time to call, as this person told her to say that to me, and that she would not be accepting any calls. I have left messages for AAA corporate offices to call me, and I have gotten no response. They have my updated information, changes in address etc., and still i hear nothing about a mistake on their part and that I have to pay for them to correct. But I'm lucky! My daughter's policy is now in limbo, and all they are saying is to re-write it, and all the money I invested is gone.

I am legally disabled, and coming up with money to get the policy right, is a hardship, and should be taken care of my AAA Corp., who's agent wrote the policy, and who's audit found it, when it should have been caught over 2 years ago. I understand we are not the only ones. We have lost the interest on money that could have been there for our daughter, no matter how small, as well as all the money we spent on the policy over the last 8 years.