questions & answers

Question: An insurance company contacted us and informed us that our father purchased us whole life policies the year of our birth. He is not alive so we have no information on these policies. The insurance company claims that both my brother's and my policies have had two loans issued against them on the same date. They cannot provide us any documents to prove the loans that have over the last 30+ years have increased for interest and penalties to over $8500 on each policy. It is my understanding that an active contract requires documents associated must be kept. Would that be accurate?

Answer: The insurance company must have copies of the applications, policies and the loan documents. One of the issues to be considered here is the ownership of the policy.  Did your father own the policies or did he sign ownership over to his beneficiaries.   It would behoove you to take all your communications with the insurance company and consult with a lawyer to get some guidance.  There are 3 programs in Arizona that you can use to get some inexpensive legal advice and guidance.  One is the Modest Means Program.  For a $75.00 fee, the Modest Means Program will arrange a one hour consult with an experienced attorney.  The telephone number is (866) 637-5341. Both the Maricopa County Bar Association and the Pima County Bar Association have lawyer referral services that offer a 30 minute consult with an experienced attorney.  Maricopa County's Lawyer Referral Service offers a 30 minute consultation for a fee of $40.00. The telephone number is (602) 257-4434.  Pima County's Lawyer Referral Service offers a 30 minute consultation for a fee of $35.00.  The telephone number is (520) 623-4625.