First Policy Recission Contestable Claim

[DayTimer]

I question Columbian's ethics as a company, as I have heard multiple agents telling of many denied claims. I won't sell them myself on account of all the denied claims I've heard about from them.

But guess who will sell them: Mr. Alan "Buy your life insurance from my agents before you die of kung flu" Towne

 

[rousemark]

All the claims will be contested. Contested does not mean it will necessarily be denied. I've had two deaths recently, on at 8 months one at 9 months. Both were contested and both were subsequently paid. One with Liberty Bankers Life, and the other with Americo.

Clean business gets paid.

I question Columbian's ethics as a company, as I have heard multiple agents telling of many denied claims. I won't sell them myself on account of all the denied claims I've heard about from them.

David, you have your terms mixed up. All constable period claims will be INVESTIGATED... if the investigation shows there is a problem, the claim will be CONTESTED. Contest is a legal term meaning to challenge.

 

[rousemark]

All the claims will be contested. Contested does not mean it will necessarily be denied. I've had two deaths recently, on at 8 months one at 9 months. Both were contested and both were subsequently paid. One with Liberty Bankers Life, and the other with Americo.

Clean business gets paid.

I question Columbian's ethics as a company, as I have heard multiple agents telling of many denied claims. I won't sell them myself on account of all the denied claims I've heard about from them.

I have not found their rate of denial worse than others. The primary reason for contested claims (In my mind) is agent's submitting apps marked no, no, never, none, had the flu in '61.

Adequate field underwriting will cut contested claims drastically.

 

[DayTimer]

Adequate field underwriting will cut contested claims drastically.

"In December, the DFS ordered Columbian Mutual Life Insurance Co. to pay beneficiaries of 257 deceased policyholders a combined $2 million, plus a $257,000 fine, after the agency found the company had improperly denied coverage. The policies in question were marketed to low- and middle-income New Yorkers for funeral, burial and other expenses, the DFS said. The investigation found two Columbian-owned insurers denied coverage and rescinded policies without proving misrepresentation within a two-year contestable period after policyholders died and by unilaterally rescinding policies without a judicial ruling or a settlement with beneficiaries."

NY Gov. Cuomo Warns Life Insurers to Pay Beneficiaries Within Two-year Contestable Period - Wink

 

[DayTimer]

David, you have your terms mixed up. All constable period claims will be INVESTIGATED... if the investigation shows there is a problem, the claim will be CONTESTED. Contest is a legal term meaning to challenge.

Not for nothing, but I am pretty sure the investigation is the Contesting of the claim, which leads either to a denial or approval. If there were no contest, the claim would be paid immediately. So, with all due respect, I believe it is you who may be mixed up on this.

 

[rousemark]

Not for nothing, but I am pretty sure the investigation is the Contesting of the claim, which leads either to a denial or approval. If there were no contest, the claim would be paid immediately. So, with all due respect, I believe it is you who may be mixed up on this.

… During the investigation period, the decision has not been made not to pay the claim. That is what they are trying to decide, therefore no contest has been made.. When they decide to challenge the claim, not paying it, that is the "contest"...

 

[DayTimer]

When they decide to challenge the claim, not paying it, that is the "contest"...

No, that is the outcome, Louis. The contest is the period of time when it can go either way, e.g. a ball game or an sporting event is referred to as a contest. Once the contest concludes, we have a winner and a loser.

 

[rousemark]

Another way to look at is, a person dies during the contestable period. The company investigates and then pays the claim. They did not "contest" the payment of the claim because they paid it.

 

[rousemark]

No, that is the outcome, Louis. The contest is the period of time when it can go either way, e.g. a ball game or an sporting event is referred to as a contest. Once the contest concludes, we have a winner and a loser.

Not the same.. As is the case with many differnet English words, the same word can have totally different, unrelated meanings.

CONTEST: VERB

1. engage in competition to attain (a position of power).
   "she declared her intention to contest the presidency"
   synonyms:
   compete for · contend for · vie for · challenge for · fight for · fight over ·
   
   
2. oppose (an action, decision, or theory) as mistaken or wrong.
   "the former chairman contests his dismissal"

 

[DayTimer]

Another way to look at is, a person dies during the contestable period. The company investigates and then pays the claim. They did not "contest" the payment of the claim because they paid it.

Not worth the time. I know I'm right, and now you know you're right too.