EFES Agent Lied on Monumental Application

[VolAgent]

You guys are missing the point. They have two years to discover any fraud.

You're missing the point, they have more time than that.

 

[Bozack23]

You're missing the point, they have more time than that.

In the prelicensing course I took it was a 2 year contestability for life insurance and after that the insurance company has to pay.

Now health insurance is another story. If it's fraud it can be contested anytime.

 

[VolAgent]

In the prelicensing course I took it was a 2 year contestability for life insurance and after that the insurance company has to pay.

Now health insurance is another story. If it's fraud it can be contested anytime.

Misstatement is not fraud. Misstatement is you forgot about that surgery 2 years ago, or you thought that heart attack was 3 years ago and it was really 2.

Fraud is blatant lying. You knew better when you did it, but you wanted to profit from it anyway. The ones that get fought are almost always very large and often involve STOLI. Sometimes even when the company can show fraud, they still lose in court anyway.

Have you ever read the contestability clause in an actual life insurance policy? Many companies explicitly state, except in case of fraud.

 

[b61mack]

The contestibility period is two years, just like a statue of limitation. It is to protect the public, how would you like an insurance company to say, the insurance policy your father took out in 1970, is being investigated for fraud. Now try to defend it!

 

[VolAgent]

The contestibility period is two years, just like a statue of limitation. It is to protect the public, how would you like an insurance company to say, the insurance policy your father took out in 1970, is being investigated for fraud. Now try to defend it!

Man, if only it worked that way. But then, it doesn't. The insurance company has to prove fraud. Good luck proving fraud from 40+ years ago.

 

[b61mack]

That is the point, and the reason for the 2 yrs.

 

[coop123]

If agent mis led or info is two years old, will most pay claim

 

[b61mack]

After two years they have too.

 

[nfl72]

When I started selling FE, about 4 years ago, I spoke with several companies about this very topic including UHL, MOtorists and Foresters. All three lead me to believe if it was determined by the insurance company fraud had been committed the 2 year contestablity period is thrown out the window. They also stated the entire policy history would be considered. An example would be if the policy had been in affect for 15 years and was a relativley small dollar amoutn, they would most likely just pay the claim.

But if the policy was for $35,000 and the client died after three years they would consider other options. I do know this most insurance companies have lawyers up the arce and it will cost me more to fight them than them to fight me. Also consider the fact that most FE clients don't have a pot to miss in let alone avaialbe cash to hire an attorney.

Unless of course they have a 10K policy at Foresters!