Harry Gross: Did big insurer make a mistake?

DEAR HARRY: I have been a client of one of our large life-insurance companies for as long as I can remember. My husband died in 2005, and I collected the benefit. No one from the company contacted me at that time, even though I was the only breadwinner for myself and my daughter. I finally was contacted in September and signed applications for $25,000 on me with a $10,000 coverage for my daughter. When I got the signed info from the company, I noticed that it had things reversed. The company agent said there was nothing he could do. I contacted the company and they agreed with the agent, even though the application material was correct. This company has been around for more than a century and I'm sure this is not its first error. Who can intervene to help me?

WHAT HARRY SAYS: This is a very strange situation. The application for insurance is a part of the policy. Do read them again to be sure that you applied correctly. If so, try to speak with your agent again. This inconsistency should get the company to do what's right. If they agree with the policy, the company did nothing wrong. In that case, I am surprised that they did not suggest that you reapply on new forms and apply the premiums paid to the new situation. For further help if you need it, contact the Pennsylvania Department of Insurance, at 215-560-2630.