Complaints

• Initial Complaint

  03/16/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I bought Life insurance policy number: YM00615355 (American General Life Insurance) from agent Castillo & Associates Tucson (Mr. Tony Castillo) in 2008. Up until october 2022 I had been paying my policy on time. However, I faced an internet problem which affected all of my online payments that should have been charged to my Chase Bank Credit Card. My policy was not charged and was cancelled. Our agent Castillo & Associates had been managing-representing American General Life Insurance. They have never ever told me that I had to contact American General Life Insurance directly. Castillo and Associates always wanted to control the management of my policy. Castillo & Associates told me that one their employees had sent me an email informing about my payment problem (they sent to an email address I cancelled 10 years ago). Castillo and Associates has acted negligently. It´s also hard to understand that for almost 15 years Castillo & Associates managed my insurance policy, without suggesting I should contact the insurance company directly at any moment. And now Castillo & Associates seems to be very content about the cancelling of my policy. I strongly believe Castillo & Associates is hiding information to benefit both American General Life Insurance and Castillo & Associates.

  

  Business response

  01/15/2024

  We would like to begin by mentioning that Mr. Munguia’s policy was under a preauthorized monthly EFT draft and not a credit card draft. The only two ways to cancel a preauthorized EFT are by not having sufficient funds or by member’s request. An internet problem would not have any effect on EFT payments as American General drafts the agreed amount on the agreed day of every month. When an EFT is cancelled due to insufficient funds as in this case, American General sends letter to the insured to the address on file to inform them that payment was not secure and needs to be done to avoid cancelation.
  

  On October 20, 2022, an employee of Castillo & Associates noticed that Mr. Munguia’s policy was on lapse pending and she emailed the lapse pending letter to the email on record (noblecorp@yahoo.com) to let him know his policy was on lapse pending/going to cancel. The phone number we had on file didn’t work either. The policy was cancelled after American General sent letters to the address on record 5655 E River Rd Ste 101, the same address we, Castillo & Associates, had on file at that time. Later we came to find out that these letters were returned to American General as undeliverable.

  Castillo & Associates does not control the management of any policy. We only service policies as we are insurance agents and have no authority to make any changes to any information without the signature of the insured. We would gladly have informed American General of the changes/contact information if Mr. Munguia had notified our agency of his change of address and email.
  

  Policy cancelled on October of 2022, however, Mr. Munguia’s wife called our office on January 18, 2023, to ask about her husband’s policy as she noticed that their payments were not being drafted from their bank account. Mr. Munguia’s wife is the one who notified our office about the change of address and email on that day. As life insurance agents, we assisted in the reinstatement process that Mr. Munguia requested, unfortunately, American General denied reinstatement as Mr. Munguia does not meet current Foreign National requirements.
  

  Castillo & Associates does not hide any information from the insured or insurance company as it will be ethically or fraudulently wrong. As agents, we are obligated to be as transparent as possible and to provide both parties with the information that was given to us. In this case, American General tried to contact Mr. Munguia directly by mail and were unsuccessful as the mail got returned to them.

  Enclosing: In comes down to this, the EFT was cancelled due to insufficient funds, Mr. Munguia’s mailing PO Box changed, and he never notified the insurance company or our agency. We have never told him, or any of our clients, not to call the insurance company as the contract is with the insurance company, not us as we are only the insurance agents. We cannot offer a refund as payments were always paid to American General, not Castillo & Associates.
  
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