ComplaintsforCapitol Transamerica Corp

• Initial Complaint

  06/17/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  This Insurance Company denied a valid claim and has refused to provide any explanation. They stated their original denial was because I failed to provide notice of our error before issuing a credit to our customer. Fortunately I provided notice both by phone and email so I had a written record along with their acknowledgement. They then tried to deny the claim because they said I notified my Insurance Agent not their corporate office and tried to tell me that the insurance agent isn't valid. I then showed them that the insurance agent was the ONLY person in the 6 years I have had their policy that ever contacted me directly. Additionally, the insurance agent handled the original sale and all renewals of my policy and the Corporation always accepted my payments and issued the renewed policies so clearly the insurance agent is authorized to act on behalf of the Insurance Corporation. They then attempted to deny my claim because they said I didn't notify my agent in a timely manner. I then provided written documentation that notification was made on the exact same date that our mistake was brought to our company's attention. They still denied the claim after having received all of the documentation they had requested and claimed we hadn't provided them with anything that would cause them to change their mind. There are a handful of other reasons for concern including the lack of professional communication and juvenile behavior displayed- one of their claims managers literally was laughing at us during a Teams Meeting and muted my Insurance Agent so he couldn't respond. This company does not honor the policies that they write.

  Business response

  07/02/2024

  Please see the attached response. 

  Customer response

  07/03/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  First, in regard to Capitol Indemnity Corporation's assertion that proper notice wasn't provided and that American Advantage isn't an authorized representative of Capitol Indemnity: American Advantage is the ONLY representative of Capitol Indemnity that communicated with my company throughout the 7 years that I've maintained this E&O policy. So of course when there was an issue, American Advantage is the Representative that I called and notified. Furthermore, I did exactly as instructed by the AUTHORIZED Representative. Per Capitol Indemnity's own response to this complaint, "Capitol Indemnity Corporation (Capitol) provided Miscellaneous E&O coverage to ADK Consulting under the above-captioned policy, which was renewed, at the request of A.K.s agent, American Advantage Insurance (American Advantage), on January 30, 2024."  How could American Advantage renew this policy is they are not authorized by Capitol Indemnity to do so?

  Second, in regard to Capitol Indemnity's assertion that notice was provided AFTER the credit was issued to our Client. That is False. As you will see from the attached file. Notice was provided to Capitol Indemnity's Representative the very same day we had been made aware of our mistake by our Customer - well ahead of the Credit that was issued.

  Third, in regard to the following quote provided by Capitol Indemnity: My updated conclusion is that you [sic.] and your denial letter appear to be 100% correct, and I appear to be 100% in the wrong." The word "APPEAR" is critical here and Capitol Indemnity is shamefully providing you with this quote out of context. The context is in regard to the initial rejection letter that I received from the Adjuster alleging that their authorized representative, American Advantage, was not contacted in time.

  As you will see from the attached file, we have complied 100% with everything requested by Capitol Indemnity. If what Capitol Indemnity alleges is correct, then why did they request proof that we had notified their authorized representative, American Advantage, before we had issued the credit to our Customer? If you contact American Advantage, you will find that we did provide proper notice and we did everything that was requested of us, as also evidenced in the attached file. American Advantage will also confirm that Capitol Indemnity confirmed the following:

  1. Original notice of error was provided on the same day we were made aware of our error, and well in advance of the credit issued to our customer

  2. That the error is the type of error covered by our E&O policy

  3. That the amount of the credit issued to our Customer was fair and reasonable

  I have reviewed our entire policy and see nothing that negates Capitol Indemnities responsibility to cover this claim. Please review the attached file and please contact American Advantage for further information concerning this Claim: *****************************-Partner, American Advantage Insurance-IMC, ***************************************. Wi. 53202
  Office ************   ext.3  
  Fax    ************ 
  ***************************

  Regards,
  
  *******************

  Business response

  07/09/2024

  Please see our original response attached. No new information has been provided by the Complainant. Should you have any questions, please contact me at ************.

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