Agent Lied About Tobacco

[goillini52]

I always err on the side of caution. With my companies the question is any tobacco use last 12 months. I specifically say that i cludes dip, snuff, chew (which i thi k is same as dip - i dont know since i abstain) cigarretes. Cigars. Then i say any form of tobacco. Then if i suspect they mAy not understand i say. "Even if u only have one a month or just smoke when u drink" many people then say yes n tell me they thought they were a non smoker if they only smoke while drinking. I just tell them i am not the police but it is my job to be sure their family will get paid and "dont u want it to get paid? Otherwise y r u getting insurance?"

Hahaha...so if somebody only smokes when they drink, and they're drunk all the time...they're a non smoker. That's a good one!

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Question. ... if the company returns the premium if they die in the first two years, technically if someone was writing security national graded (2 year rop).... they could say no to smoking even if they smoked. If they die, they are only getting money back anyways. Not saying this is ethical or should be done, but it could easily since snl doesn't check mib anyways.

You'd still have the problem because the didn't pay the smoker rates.

 

[bill3173]

The agent's job is nothing more than to ask the question. Tobacco raises the premium, so does marijuana, cocaine, meth, base jumping, drag racing, scuba diving, etc. People lie about shitt all the time because they know it costs them more.

I wrote a large face amount life app recently, and got a letter from the carrier telling me I missed something and to go back and interview the client. I called him up and I said what's up with this? He responded. How the hell did they know I scuba dive? You put it on your credit card.

 

[goget]

So if somebody has a claim with snl's rop in the 2 yr period they investigate?So if the client lies they get the rop and not the 10%? Wow that's about a $20 difference.

 

[rousemark]

So if somebody has a claim with snl's rop in the 2 yr period they investigate?So if the client lies they get the rop and not the 10%? Wow that's about a $20 difference.

They are required to investigate contestable claims.. Paying a non righteoes claim is as much of an offense as not paying a righteous one.

The real problem with fraudulent apps, even the question based ROP apps is the increase of the mortality down the road... 3. 5 10+ years that cause the probably. The policy is not rated fro that mortality cost. . Not a whole lot the comapny can do there except if they find a pattern of questionable conduct in an agent's contestable claims then they can fire the agent.

One of these days, if it hasn't already happened, a company is going to go to court charging agents who clean sheet with fraud and demand they pay damages. .

 

[Gooner]

So if somebody has a claim with snl's rop in the 2 yr period they investigate?So if the client lies they get the rop and not the 10%? Wow that's about a $20 difference.

Why's it such a big deal to you? If you don't like the product, obviously, then don't write it. Take the 40% haircut and crazy chargeback risk of GI. Rop or not, the company has a write to investigate, considering it is not a GI case. Would you blow so much smoke about 5 star graded? They are still paying out company money...just more of it in 5 stars case.

 

[Klutch]

The agent's job is nothing more than to ask the question. Tobacco raises the premium, so does marijuana, cocaine, meth, base jumping, drag racing, scuba diving, etc. People lie about shitt all the time because they know it costs them more.

I wrote a large face amount life app recently, and got a letter from the carrier telling me I missed something and to go back and interview the client. I called him up and I said what's up with this? He responded. How the hell did they know I scuba dive? You put it on your credit card.

How would they know what he charged on his credit card?

 

[FEX Quotes]

Question. ... if the company returns the premium if they die in the first two years, technically if someone was writing security national graded (2 year rop).... they could say no to smoking even if they smoked. If they die, they are only getting money back anyways. Not saying this is ethical or should be done, but it could easily since snl doesn't check mib anyways.

The real problem with this thinking is that if the policy would need to be reinstated down the road (think non pay), the 2 year contestability clock restarts

 

[VolAgent]

They are required to investigate contestable claims.. Paying a non righteoes claim is as much of an offense as not paying a righteous one.

The real problem with fraudulent apps, even the question based ROP apps is the increase of the mortality down the road... 3. 5 10+ years that cause the probably. The policy is not rated fro that mortality cost. . Not a whole lot the comapny can do there except if they find a pattern of questionable conduct in an agent's contestable claims then they can fire the agent.

One of these days, if it hasn't already happened, a company is going to go to court charging agents who clean sheet with fraud and demand they pay damages. .

Not exactly.

They have the right to investigate any contestable claim. They have an obligation to be prudent with company money. Investigating a ROP claim may not be the best use of company resources and money.

I know American Continental told me at one time that they were not going to investigate modified claims. They would just pay it. Now if it had been an accident and thus eligible for full coverage? Perhaps they would have. But for just returning a month's or two of premium plus 10%, they felt it wasn't a wise move.

Also to your statement about contesting claims, I believe you have it backwards. Companies will contest small claims all day long, perhaps more than larger ones. The feeling is that a smaller claim is less likely to be fought over by the beneficiary. Obviously that isn't always the case when you see the link earlier from Fexquotes.

 

[rousemark]

Not exactly.

They have the right to investigate any contestable claim. They have an obligation to be prudent with company money. Investigating a ROP claim may not be the best use of company resources and money.

I know American Continental told me at one time that they were not going to investigate modified claims. They would just pay it. Now if it had been an accident and thus eligible for full coverage? Perhaps they would have. But for just returning a month's or two of premium plus 10%, they felt it wasn't a wise move.

Also to your statement about contesting claims, I believe you have it backwards. Companies will contest small claims all day long, perhaps more than larger ones. The feeling is that a smaller claim is less likely to be fought over by the beneficiary. Obviously that isn't always the case when you see the link earlier from Fexquotes.

Don't know about the backwards part.. I have always said they will contest a small claim as quickly as they would a large one.

 

[John Galt]

How would they know what he charged on his credit card?

Thats what I would like to know.