08-17-2010, 09:59 AM | #1 |
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Ad in Automotive News: Chrysler Insurance Terminated?
I was reading through the Classified Section of Automotive News and noticed an ad with the following header - Chrysler Insurance Terminated? The ad appears to be from a Law Firm from Ohio and they're looking for dealers who have had their Dealer Term Insurance canceled.
Frankly, I'm not 100% sure I know what they're talking about - Is this the Term Life Insurance Policy that dealer principals could buy through Chrysler Insurance? Is Chrysler Insurance part of Chrysler LLC or are they part of Chrysler Financial? |
08-17-2010, 12:34 PM | #2 |
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yes, that is what it is...term life insurance for the dealer principal. The program has been around for years. It is actually administered and underwritten by Prudential Insurance. It's a group policy with set term rates according to age bracket. I had it in force the whole time I was a dealer, and when I sold out in 2005, I was allowed to convert it over to a Prudential policy with the same rates and benefits. I suspect that in the chaos that occurred last summer quite a few dealers probably forgot all about the policy until after the lapse/conversion date had passed. Just a guess, but I know it would have been pretty far down my list of things to worry about under the circumstances.
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08-17-2010, 12:37 PM | #3 |
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another thought...it could be that Chrysler Insurance screwed Prudential in some way during the bankruptcy...not paying some administrative costs/fees...not forwarding dealer payments or something and Prudential just terminated the whole deal and the dealers got caught in the crossfire.
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08-17-2010, 12:56 PM | #4 | ||
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Quote:
Quote:
I'll send the Law Firm an e-mail and see if I can get some more details. My only thought was Chrysler Insurance was canceling Life Insurance policies they knew would be difficult to re-new. |
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08-17-2010, 01:51 PM | #5 |
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Prudential Insurance changed my policy a few years back to just them. It seems they dropped Chrylser
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08-17-2010, 02:09 PM | #6 |
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the ad does cover the issue of prudential cancelling the policies because they claimed non-payment from the dealers. i have proof they cashed the check, and then cancelled the policy. they are totally disorganized and probably have done the same to other chrysler dealers. prudential has stonewalled answers and chrysler is not cooperating in any way. many dealers have depended on this insurance in estate planning and to be dropped like a hot potato is unfair and perhaps illegal. i think all terminated chrysler/jeep/dodge dealers must investigage their coverages.
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08-17-2010, 02:20 PM | #7 |
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I have a policy through them and have been trying to get it increased for about a month. Every time I call I just get pushed from one person to the next and can't get a dam thing done.
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08-17-2010, 03:01 PM | #8 | |
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Thanks for sharing your information. The cool thing about the forum is if something is happening to one dealer, it's probably happening to others and the forum allows dealers to share their experiences. I'll add this topic to the next Blast FAX I send and we'll try to find other dealers who have had the same problem with Chrysler Insurance and Prudential. |
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08-17-2010, 03:03 PM | #9 | |
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08-17-2010, 03:45 PM | #10 |
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So far as I know mine is through the Chrysler program, but when I get a bill it is straight from Prudential.
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08-20-2010, 02:14 PM | #11 |
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Mine is also through the Chrysler program and I have always paid Prudential direct. I have seen no interruption in the billing since the BK.
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08-21-2010, 06:27 AM | #12 |
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08-23-2010, 05:07 PM | #13 |
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after intense conversations with prudential, they agreed to offer the same coverage to myself as before the chrysler b.r. actions. in essence, prudential took my money, cashed the check, the check cleared but they denied they had a policy with myself.
to date they have not refunded any money they denied they have received. i made payment on another, new policy to maintain coverage. if you have depended on this policy for estate planning, caution is necessary. keep all your documents and proof of payment! your beneficiaries may not be aware of this mess. |
08-24-2010, 08:07 AM | #14 | |
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Concerning Estate Planning, you make an excellent point. With the return of the "Death Tax" I'm sure more dealers will have to decide if life insurance is a useful tool to minimize the tax obligation of their heirs. |
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08-24-2010, 02:14 PM | #15 |
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I think I may change to another company anyway, I am still having trouble with them.
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