Posted on 01/25/2008 by Are you kidding me?
Viewed: 324 times
Some people don't understand how insurance works.
Now, let me explain quickly how insurance works. Insurance is supposed to bring you back to whole. It is not supposed to leave you in a BETTER position nor a worse position.
When I was working in the agency in the Midwest, we had a person who had had a fire in their kitchen. Everything was destroyed and even though I wasn't working solely on claims, I still dealt with them.
I had been a go between for both the insured and the agent who seemed to be having a hard time connecting.
One quiet day, I got a call from the insured who was frantic because the contractor was going to put a lien on their house because he hadn't been paid from the insurance company.
Since the house was paid off, there was no mortgage company on the checks for repair. If there is a damage to the structure and a mortgage is present, the check must be made out to both parties.
I told the insured that I would call the adjuster and find out what the story was and why a check wasn't issued. I got a hold of the adjuster and he had issued a payment directly to the insured for about $75,000 (give or take.) So I found out when it was mailed, how it was mailed and if it was cashed and who he talked to. Then I called the insured back.
I asked if they got a check for the $75k and the insured said they did. I asked if they cashed it and they said yes. So I asked what the problem was, that was the amount of the repairs minus the deductible.
He said the repair man was waiting for the check from the insurance company to be paid. I told him that check was for the repair man and that the adjuster had mentioned it both in the letter and had conveyed it in a phone call.
I asked what happened to the check since it had been cashed by Mrs. Insured on X day. The insured was silent for a minute and then said, "We thought it was for loss of use and meal reimbursement, so we paid off all our debts and then bought *big ticket items*". 1. Loss of use is done on a percentage basis that I can't even begin to fathom. 2. Usually meal allowance is "reasonable" meals around $20 a person per meal. Give or take. But I have NEVER seen a loss of use/meal claim where it was over $1,000-$2,000 max.
I was dumbfounded. I asked the insured if he had any of those things before the fire and he stated that he had not. So I asked why in the world we would send him a check for him to buy all these things and to pay down his debt in addition to paying for the repairs in full- making his claim over $150K (about 1/2 the value of his home).
He then admitted he never read the letter with the check and had no idea what it was for, but assumed he could spend it how he wanted. Technically, yes, but one would think that if we sent a check for the exact amount of repairs it would be for that.
After spending about 30 minutes explaining to him that the check was meant for that and faxing him a copy of the letter with the check he finally understood. Just before I hung up I asked, "Is there anything else I can help you with today?"
He then says, "Yes, so when will you send a check to the guy? He's going to put a lien on our house and we need to prevent that! We already told him that you were going to send a check to him directly! And we don't have an extra $75K lying around to pay him off in full."
POST A COMMENTCK(01/25/2008)
And this guy HAD a busiess?!? It is obvious that he didn't run his business very well (i.e. - no a lick of sense [cents] about him!).
dontask 0 :)(01/25/2008)
"What we have here, is a failure to communicate".
smartyshorts(01/28/2008)
One of the funniest things ever. I'm surprised the story didn't end with this MENSA candidate calling back to speak to someone else to get a 'better' answer. Some people just don't hear any answer other than the one they want.
thelma(01/28/2008)
Stupid is as stupid does.
SouthernProgrammer(01/28/2008)
What in the world was this guy thinking? "I sure got me some good insurance! $1200 a year and I got me a check for $75K AND they pay for my house to be rebuilt! I plan to burn my house down EVERY year from now on!"
Ronon Dex(01/28/2008)
What an epic FAIL. Mr. Entitlement is going to be in a world of hurt without house - where's he going to put all his nice new stuff?
TheNewGuy(01/29/2008)
Just when you think the world can't get any dumber... Another sure first sign of the entitlement generation.
Nutritionist(02/01/2008)
I think the proper term for this is Mentally Challenged! Birth Control should be mandatory for some people!
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