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Insurance Carrier: Jackson Insurance Co.
State: Texas

Consumer Complaint:

Can a policy be on an extended term or reduced paid up and still be accepting policy premiums?  Wrote to company on behalf of grandmother who had five policies with company in 2001 and after no response had to write to SC Dept of Ins.  Reply was then received that stated some policies  had been on extended term or reduced paid up and expired.  Recently came across correspondence that shows payments were still being made to policies in 1997 via agent when extended term/reduced paid up took effect beginning in 1986.  How can this be?  Jackson Ins recently brought Life of GA.  Grandmother recently deceased and would like this matter cleared up before I submit death claim.


Insurance Expert Answer:

Insurance companies often have arrangements with banks that operate "lock boxes" and rush to deposit checks as they come in. Then the insurance company tries to match the payment to a policy. When they can't some wait for the policyholder to inquire. Yes, it otherwise may be unusual to knowingly accept premium, but how would that help you? If the premium check was cashed it would not reinstate a lapsed policy. If it would it have extended a policy my guess is the time of the extension may well have expired before your relative expired.