Agents that lie

[shonceman]

I just left a guy who says he talked to another agent that quoted him lower than me. I checked and found she was quoting a nontobacco rate. I asked, "Did you tell her you smoke?" He said, "Yeah, but she said just to say no."

Now that's not nearly as bad as some of the cleansheeting I've seen. Like the guy I remember from years ago, when taking insulin was a bigger deal than it is now. Another agent had answered all the health questions "no". When I asked the client whether he told the agent about his diabetes, He said, "Yes, but he told me it won't matter as long as I live at least 2 years." The agent was betting against the contestable period, which is unfortunately not that uncommon.

My standard response is "If you answer a health question no when you know it should be yes, you may be causing your family a problem at claim time." I often follow that with, "Think about this: if the agent will lie to his company, he'll lie to you, too!" Sometimes that matters to them, sometimes not. What are some other ways to handle it when you encounter this kind of thing?

 

[VolAgent]

Are you asking, do I feel bad for people who knew they were committing fraud and just hoping no one found out? Not a bit.

Unless the person is completely surprised when you point out the lie, I feel absolutely no sympathy for them. They knew they were being asked to lie, and while they may not completely understand the ramifications, they knew they were cheating the insurance company. Also, I bet they were planning for their family to sell the agent down the river if the company found out.

 

[rousemark]

Are you asking, do I feel bad for people who knew they were committing fraud and just hoping no one found out? Not a bit.

Unless the person is completely surprised when you point out the lie, I feel absolutely no sympathy for them. They knew they were being asked to lie, and while they may not completely understand the ramifications, they knew they were cheating the insurance company. Also, I bet they were planning for their family to sell the agent down the river if the company found out.

I do feel for the agent that loses the sale because he can't compete with the agent that lies but it is part of the way things are.

 

[VolAgent]

I do feel for the agent that loses the sale because he can't compete with the agent that lies but it is part of the way things are.

I would agree with that, although the agent really may have dodged a bullet too. Who knows what lie they would have come up with on their own for the legit agent.

 

[DayTimer]

He said, "Yes, but he told me it won't matter as long as I live at least 2 years." The agent was betting against the contestable period, which is unfortunately not that uncommon.

I replaced a policy back in April or May that was only a month old. The agent had her lie on the application and during the phone interview about her smoking. I told her that if she dies, and the insurance company finds out that she had been a smoker, they might deny the claim, even if you die in an accident and your death has nothing to do with smoking. How will your daughter feel if something happens to you and she finds out she isn't getting the $25,000 because mom lied to the insurance company to save $25 a month?* Then I just shut up.

* I stretched my arms real wide when I said $25,000, and, taking a page out of Tim Winders 's book, I made it sound like a million bucks, and when I said $25. i pinched my thumb and forefinger together and made it sound like a ridiculously small amount to worry about when compared to that $25000 gift for her daughter. Also, the "how will your daughter feel when she finds out ... mom lied" definitely unsettled the client a good bit. I don't know about you, but I never want my kids to think "daddy was a liar," especially after I'm gone

 

[Newby]

I replaced a policy back in April or May that was only a month old. The agent had her lie on the application and during the phone interview about her smoking. I told her that if she dies, and the insurance company finds out that she had been a smoker, they might deny the claim, even if you die in an accident and your death has nothing to do with smoking. How will your daughter feel if something happens to you and she finds out she isn't getting the $25,000 because mom lied to the insurance company to save $25 a month?* Then I just shut up.

* I stretched my arms real wide when I said $25,000, and, taking a page out of Tim Winders 's book, I made it sound like a million bucks, and when I said $25. i pinched my thumb and forefinger together and made it sound like a ridiculously small amount to worry about when compared to that $25000 gift for her daughter. Also, the "how will your daughter feel when she finds out ... mom lied" definitely unsettled the client a good bit. I don't know about you, but I never want my kids to think "daddy was a liar," especially after I'm gone

Excellent way to explain it. By I even prefer the words "committed insurance fraud" to "lie" .

 

[shonceman]

Those are great responses!

Like @VolAgent , I don't feel sorry for anybody who lies and ends up with a policy rescinded at claim time. But if they lied to me and I get charged back, then I feel REAL bad! And I feel bad for the family.

But what's more disturbing to me is the willingness of so many in our industry to tell a bald faced lie to get a sale. I'm used to that behavior from captive employee agents who have a sales manager breathing down their neck for results. But it still surprises me when it's being done by independent agents who should know better.

FWIW, I still don't have to take my shoes off to count how many policies I've had rescinded since I started 28 years ago. I think it's because I've done everything possible at app time to make sure we don't have problems at claim time.

 

[mudhound]

Those are great responses!

Like @VolAgent , I don't feel sorry for anybody who lies and ends up with a policy rescinded at claim time. But if they lied to me and I get charged back, then I feel REAL bad! And I feel bad for the family.

But what's more disturbing to me is the willingness of so many in our industry to tell a bald faced lie to get a sale. I'm used to that behavior from captive employee agents who have a sales manager breathing down their neck for results. But it still surprises me when it's being done by independent agents who should know better.

FWIW, I still don't have to take my shoes off to count how many policies I've had rescinded since I started 28 years ago. I think it's because I've done everything possible at app time to make sure we don't have problems at claim time.

Me to! I get a resended policy maybe one time every 3-4 years! I think i can still count on one hand! Thank God!

 

[rousemark]

Excellent way to explain it. By I even prefer the words "committed insurance fraud" to "lie" .

Why no use both, "Lied and committed insurance fraud to save ....."

 

[PA Bill]

Are you asking, do I feel bad for people who knew they were committing fraud and just hoping no one found out? Not a bit.

Unless the person is completely surprised when you point out the lie, I feel absolutely no sympathy for them. They knew they were being asked to lie, and while they may not completely understand the ramifications, they knew they were cheating the insurance company. Also, I bet they were planning for their family to sell the agent down the river if the company found out.

Yep. They will lie six ways to Sunday to throw us under the bus. And we all know who the kangaroo court will side with in the end.