ComplaintsforGulf States Insurance

• Initial Complaint

  08/02/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I started a homeowner's insurance policy with Gulf States Insurance effective 12/29/22 - 12/29/23. The premium amount of $2,226 was paid through my escrow account in full on 12/7/22. This policy should be in good standing until the end of this year but then I received a notice of cancellation in July 2023 because my premium has not been paid (attachment below). I did not agree to pay an extra premium price in addition to the one that was paid in full in December of 2022. I notified Gulf States insurance that I will not be continuing their policy effective 8/5/23 and expect a refund for the remaining months of the current policy. However, I spoke with two customer service representatives, ***** and ***, who stated that I cannot be issued a refund due to nonpayment. It is my understanding that my premium amount that was agreed upon and signed for was paid in full when I purchased this policy. I want to be issued a refund for the remainder of the policy between 8/5/23-12/29/23.

  

  Business response

  08/08/2023

  Thank you for the opportunity for our organization to provide a follow up response on the noted complaint.
  
  The cancellation and additional premium due that has been described in the complaint has been explained in detail, in writing, with our insured. 
  
  The additional premium was due to required policy rating corrections processed within the allowable underwriting discovery period for the noted policy.  The rating corrections resulted in an additional premium and were necessary for our company to be in compliance with our rating factors filed with the Louisiana Department of Insurance.
  
  The additional premium was not paid by the due date and therefore the policy administration system issued a notice of non-payment cancellation when the equity date was reached on the policy term.  In this case, the carry date was 8/3/2023.
  
  As a courtesy to our insured, we made an exception to amend the policy back to how it was rated before the corrections were made.  The cancellation reason was changed to demonstrate that the reason was due to the Insured’s request effective 8/3/2023 which is the effective date that our insured secured new coverage with another company. 
  
  This decision was made after learning that these corrections were not explained to our insured by their agent back in December 2022.
  
  A refund check for the unearned premiums was mailed directly to our insured and we are pending confirmation that the refund has been received by our insured.   
  
  
  If you require any further information, please let me know.
  
  Thank you!
  

  Customer response

  08/08/2023

  
  Better Business Bureau:
  I have reviewed the response made by the business in reference to complaint ID 20411283, and find that this resolution is satisfactory to me.
  Sincerely,
  Catherine T***

• Initial Complaint

  05/04/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  On 12. 29, 2022, my homeowners and flood policy was due for renewal. Seeking a new company, I spoke with Ms. Rebecca ******** at ********* Insurance early December of 2022 about new policies. I decided to go with Gulf States, and I electronically signed December 27, 2022. I paid the entire amount $2743 on 12. 29. 2022. I canceled my existing homeowners and flood policies. On 2. 6. 2023, (over a month later) Ms. ******** via email contacted me stating Gulf States requested proof of flood coverage. I informed her I dropped previous policies AFTER acceptance by Gulf States. Now I was told, Gulf States required around another $1000 to cover me, under the same policy I already signed and paid for, without flood insurance. On 2. 14. 2023, via email, I informed Ms. ********, due to contractual changes, not part of the original signing, I was not interested in the policy, please refund my money. I’ve lost my old policy pricing, and flood policy pricing. Her reply, “I understand.” I asked again about my refund. She said she’d see how quickly she could get policy cancelled and refund. Canceled? There either was one because I sign the contract for the original price, or there never was one! On 2. 27. 2023 follow up via email to Rebecca to ask the refund status. Rebecca, had not told Gulf States. She said she was now sending me the cancellation documents, which she did. So, she did nothing for 2 weeks. I received a letter from Gulf States in this timeframe. Telling me they intended to “cancel” the policy on 3.24.2023, as result of not having flood or paying the additional money. Dropped? There was never a policy! Gulf States must have received my paperwork, because I received a second letter, outlining the cancellation, and refund would be 15 days after effective cancellation date of 2. 27, 2023. On 3. 24, 2023, 19 work days later, a partial refund of $2164 of the $2743 I paid, arrived. $579 deducted, for holding my money, doing nothing, changing the terms of the contract.

  

  Business response

  05/30/2023

  Response in attachment

  May 30, 2023
  Better Business Bureau
  4003 West Congress St
  Lafayette, Louisiana 70506
  Attention: ******** ******
  RE: ****** *********** - ************
  

  Dear ******** ******,
  

  Thank you for the opportunity to review and respond to the complaint filed by ****** ***********.

  Gulf States Insurance Company cannot respond on behalf of ********* ********* ******* **** but will address the areas of the complaint that we do have the ability to respond to.
  

  On 12/05/2022 a quote for homeowners insurance was created in our policy administration system for property location **** ******* *****, ********* ** ***** by ********* ********* ******* **** The quote was converted to
  an application and coverage was bound (secured) on 12/27/2022 with a policy effective date of 12/29/2022. ********* ********* ******* **** obtained a signed application (available upon request) on 12/27/2022 from
  ****** *********** and processed a bank draft for the premium in the amount of $2,743.00.

  
  It was in our internal underwriting review process that we identified that the application contained an invalid flood policy number (******). The property location is in an AE flood zone and our guidelines require all locations in an
  A or V flood zone to have a separate, active flood policy. Our underwriting team issued a cancellation notice on 2/21/2023 to be effective 3/24/2023 due to underwriting reasons.
  

  On 2/27/2023 we received a signed request from our insured to cancel the policy as of 2/27/2023, which was processed that same day shortening the original cancellation date from 3/24/2023 to 2/27/2023. A pro-rated
  premium refund in the amount of $2,164.00 was returned via check# ***** to Mr. ****** *********** on 3/17/2023. Non-refundable fees include: $125.00 Policy Fee & $30.00 Inspection Fee. Pro-rated fee: $9.00
  Louisiana Fair Plan Fee. Earned premium: $415.00 for coverage period 12/29/2022 - 02/27/2023.

  
  Please let me know if there are any additional questions that you might have with regard to this complaint.
  

  Sincerely,

  Crystal *****, Vice President
  

  Customer response

  06/01/2023

  
  Complaint: 20016465
  
  I am rejecting this response because: 

  Gulf States has not addressed validating not refunding my money. They’ve basically stated they accepted the paperwork, and my money, Then later, rejected or voided the policy, a signed contractual agreement, because I did not have flood insurance. If their policy is I MUST have flood insurance to have the policy, then I had no policy. I was rejected over a month after signing the paperwork. I deserve a full refund. Nothing in their response says anything I don’t already know. They are admitting they accepted a signed contract with me, took my money, then renegotiated the agreement, then dropped because I didn’t like the new higher premiums terms. The only reason I even cancelled a non existent policy, was I suspected they were going to charge me and I wanted further charges to cease and desist. 
  
  Sincerely,
  
  ****** ***********

  

  Business response

  06/02/2023

  Thank you for the opportunity to respond to this follow up inquiry.  Coverage has been afforded for the time period of 12/29/2022-02/27/2023.  The earned premium charge for this coverage period is $579.00 ($415.00 in premium; $155.00 in policy & inspection fees; $9.00 in Louisiana Citizens fees). 
  Your signed application with and payment to Gulf States Insurance Company issued policy ************.
  
  The application that you signed indicated that you had an active flood policy.  This information was misrepresented on your application and this discovery initiated the underwriting cancellation process. 
  
  If you provide evidence of insurance for the property location with these dates: 12/29/2022 – 02/27/2023 and include your signed request to cancel ************ effective flat 12/29/2022, we will cancel the policy flat and issue a full refund for the remaining premium on the policy - $579.00.
  
  You may send these items to [email protected] ATTN: Crystal *****

  Customer response

  06/05/2023

  
  Complaint: 20016465
  
  I am rejecting this response because:

  This says I misrepresented having a flood insurance policy and, it was required to have the policy. Where’s the proof of this? I would never for any reason give information that was not true for any reason. I only answered the questions asked and did everything in good faith. Who would pay a premium IN FULL knowing they would only receive a partial refund if rejected? If Gulf States can show me paperwork stating an active flood insurance policy was required for ************, and, I SIGNED THAT PAPERWORK, I will consider the matter closed.
  

  Gulf States did not request paperwork that I WOULD CARRY AN ACTIVE FLOOD INSURANCE in order to get the policy. If they did, they would have produced it, and shown, where in the fine print it says it’s required, then case closed. They should have refunded everything when altering the requirements of an already signed document, if they didn’t want to cover me. It seems they are saying they made a mistake they later caught, at my expense. It’s not my responsibility to know about hidden requirements, it’s their responsibility ask for it. 

  
  Sincerely,
  
  ****** ***********

  Customer response

  06/07/2023

  Better Business Bureau:

  I would like to reject the offer of Arbitration for complaint ID 20016465.

  Sincerely,

  ****** ***********

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩