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The wait for insurance refund continues

By NANCY PARADIS
Published October 14, 2005

I retired in February as a probation officer in Florida. I received the enclosed letter from my supplemental insurance carrier that showed I was being overbilled for more than a year on my coverage and was owed about $400.

I called the number in the letter and, as instructed, sent a letter to our personnel department. It in turn forwarded the letter to the Department of State Group Insurance in Tallahassee on Feb. 28, with a second request at the end of April.

I called State Group Life Insurance in the middle of May and was told it would send the refund shortly.

As a probation officer, if one of our "clients" overpaid anything over $2, we had 15 days to send a refund request to Tallahassee and get it taken care of. I've been waiting more than 41/2 months to receive mine. What's frustrating is that for the 17 years before I retired I paid $37 a month for disability insurance and never made a single claim. Any assistance would be greatly appreciated.

Unfortunately, we have had as much, or as little, success as you. We forwarded your complaint to State Group Life Insurance Retiree and COBRA Premiums in Tallahassee on June 23, and again Aug. 3, the second time by certified mail, return receipt required. It was signed for on Aug. 10, so we know it was received.

We will continue to try to get you the refund you are due. In the meantime, we suggest you call the Department of Financial Service's office of insurance regulation at toll-free 1-800-342-2762 to see if it might be able to help you. Let us know what happens.

I'm not sure you can help me, but perhaps you can point me in the right direction. A little over a year ago, I co-signed a five-year car loan for my daughter, who has terrible credit. She promised to make the payments, which she has failed to do. As a result, I've been making the payments as well as paying her car insurance because she hasn't kept that in force.

Since the car is in her name and I am the co-signer, I know that to keep my credit in good standing the payments on the loan must be made. And the insurance has to be maintained as well, because even if my daughter totaled the car I'd be stuck with the loan.

I know it was a stupid thing to do. If there's nothing I can do but keep making the payments without getting the car, maybe my letter and your advice will keep someone else from making the same mistake. I would like to know what my rights are as the co-signer if she isn't making the payments.

- Karen Carnrike

In a nutshell: none. It it's any consolation, you are not alone in having been "burned" by a family member. While we understand a parent wanting to help a child, the fact that your daughter already had terrible credit might have been a clue. . .

But back to your problem. From your letter, it does not appear that your name is on the title, just on the loan. There's no gentle way to confirm what you already know, but if you stop making the payments, your credit rating will be affected. If your name were on the car title along with your daughter's, linked by "or," not "and," then you could sell it and pay off the loan. Otherwise, your only recourse is to take your daughter to court.

Should you feel compelled to co-sign a car loan in the future, we hope you will make sure your name is on the title. Just keep in mind that maintaining insurance becomes even more important in such a case. Not only do you need to protect your investment, but you could be held liable if the car were driven without insurance and became involved in an accident.

We're sorry you had to learn this lesson the hard way, but like you we hope that your experience will help keep someone else from making the same mistake.

Action solves problems and gets answers for you. If you have a question, or your own attempts to resolve a consumer complaint have failed, write Times Action, P.O. Box 1121, St. Petersburg, FL 33731, e-mail action@sptimes.com or call your Action number, 727 893-8171, or, outside of Pinellas, toll-free 1-800-333-7505, ext. 8171, to leave a recorded request.

We will not be responsible for personal documents, so please send only photocopies. Readers must provide a full mailing address, including ZIP code. Names of letter writers will not be omitted except in unusual circumstances. Letters may be edited for length and clarity.

[Last modified October 13, 2005, 08:41:02]