5-Star policy rescinded after 5 months

[Newby]

How would an agent have any authority to influence an underwriter of a competing, supposedly "in-force" policy?

Another thing -- this was rescinded entirely; not even offered Graded. So it must be a major problem they totally missed.

OK. I'm taking this step by step.


Ring, ring. Hello, is this the underwriting department? (or policyholders services.) This is Newby and I'm an insurance agent in Indiana. I'm here reviewing the insurance needs of Mary Smith and she has a concern with a policy she has with you. On question #5 it asks if you have had cancer in the past 24-months. She just finished her cancer treatments 12-months before she applied for this and told that to the agent but he must have made a mistake and checked no.

Mary would like a letter from your company stating that you acknowledge her cancer and will still cover her just so there isn't a problem down the road.

It helps if Mary is in the background yelling "That lyeing sack-o-sheet screwed me over!!! I'm calling the Better Business Bureau! You're not going to do this to me! I want my money back!

Is this really news to anybody?

 

[Todd King]

Re: WTF 5-Star?

Yeah, but then if you could hear the thought of the underwriter, wouldn't it be something like..."Oh God, I hope it wasn't me who glossed over that while checking the MIB!".

 

[Mattschmidt]

Re: WTF 5-Star?

OK. I'm taking this step by step.


Ring, ring. Hello, is this the underwriting department? (or policyholders services.) This is Newby and I'm an insurance agent in Indiana. I'm here reviewing the insurance needs of Mary Smith and she has a concern with a policy she has with you. On question #5 it asks if you have had cancer in the past 24-months. She just finished her cancer treatments 12-months before she applied for this and told that to the agent but he must have made a mistake and checked no.

Mary would like a letter from your company stating that you acknowledge her cancer and will still cover her just so there isn't a problem down the road.

It helps if Mary is in the background yelling "That lyeing sack-o-sheet screwed me over!!! I'm calling the Better Business Bureau! You're not going to do this to me! I want my money back!

Is this really news to anybody?

Not news to anyone. But in your example, the information came from the insured, and an insurance professional. Not the mib. 5star should be specific on how they came across the information.

 

[Newby]

Not news to anyone. But in your example, the information came from the insured, and an insurance professional. Not the mib. 5star should be specific on how they came across the information.

They are going to say MIB no matter what. It's politically correct.

 

[WinoBlues]

Re: WTF 5-Star?

But, but...."" due to a "MIB follow-up coded report that conflicts with the answers you provided us."

OK. I'm taking this step by step.


Ring, ring. Hello, is this the underwriting department? (or policyholders services.) This is Newby and I'm an insurance agent in Indiana. I'm here reviewing the insurance needs of Mary Smith and she has a concern with a policy she has with you. On question #5 it asks if you have had cancer in the past 24-months. She just finished her cancer treatments 12-months before she applied for this and told that to the agent but he must have made a mistake and checked no.

Mary would like a letter from your company stating that you acknowledge her cancer and will still cover her just so there isn't a problem down the road.

It helps if Mary is in the background yelling "That lyeing sack-o-sheet screwed me over!!! I'm calling the Better Business Bureau! You're not going to do this to me! I want my money back!

Is this really news to anybody?

 

[Newby]

Yeah, but then if you could hear the thought of the underwriter, wouldn't it be something like..."Oh God, I hope it wasn't me who glossed over that while checking the MIB!".

When you do this on a Columbian Life policy (I swear I'm not making this up) they will say. Hmmm. We missed that. Well I'll tell you what. He only has 18-months to go and it will be non-contestible. He probably ought to take his chances since it's already issued.

 

[Mattschmidt]

Re: WTF 5-Star?

They are going to say MIB no matter what. It's politically correct.

Gotcha..I guess insurance company's don't want to send a letter saying you lied about your medical history, with a picture of a middle finger, to an ex client

 

[Todd King]

Re: WTF 5-Star?

When you do this on a Columbian Life policy (I swear I'm not making this up) they will say. Hmmm. We missed that. Well I'll tell you what. He only has 18-months to go and it will be non-contestible. He probably ought to take his chances since it's already issued.

Well, at least they don't completely rescind the policy. But still, their mistake.

 

[Newby]

Well, at least they don't completely rescind the policy. But still, their mistake.

Oh, I still replace them. It makes them look even worse. It shows the customer that the whole company is loose with the rules. Leaves them hanging in the wind for the next 18-months.

 

[jdeasy]

Re: WTF 5-Star?

I've seen happen many times and there is usually another agent involved but I know of two cases where there was not. One was some friends of mine that had taken out State Farm life policies. They were in force for about 6 months and then all of a sudden they get a recission letter from State Farm and a refund of premiums. They had not spoken with another agent nor did they want to replace the policies.

The only reason I knew about about was because they called me in after the fact to try and get insurance since they were now without. Never could get a straight answer out of State Farm and these were fully underwritten policies.

The other one was recently and it was friend in New Jersey that had a Foresters policy rescinded 8 months in. She insists that there is no competing agent involved and the people are worried sick about not having insurance.

Other than these two cases there has always been another agent behind the recission and I'm not convinced on the second one that there wasn't an agent involved.

Forethought was doing something like that a few years ago but it was right away. They were issuing policies and then doing the underwriting. Fortunately for me I wasn't involved with any of that but I knew agent that were and it was a mess.

These companies will bail quickly in the first year because they can charge back all commissions with a keystroke and wash their hands of it.