Hierarchy of Insurance?

[Crabcake Johnny]

Most people aren't out to burn the insurance company - they simply don't think some things are even worth noting on the application. I get this all the time:

"Well......two years ago I was on depression medication but that doesn't count because I was just switching jobs and I'm fine now."

This is why clients should NEVER do their own apps! An overwhemling majority will not note all of their pre-existing conditions.

 

[James]

Most people aren't out to burn the insurance company - they simply don't think some things are even worth noting on the application. I get this all the time:

"Well......two years ago I was on depression medication but that doesn't count because I was just switching jobs and I'm fine now."

This is why clients should NEVER do their own apps! An overwhemling majority will not note all of their pre-existing conditions.

I agree but if it is intentional or non intentional lie it equates to the same factor of screwing with the basic reason for underwriting. Without proper underwriting and risk criteria being followed it endangers the financial health of the carrier which serves no one. So as the devils advocate I have to say I want my health carrier to remain financially strong and obviously post underwriting is a necessity.

 

[Crabcake Johnny]

I fully agree. Unlike auto insurance which is mandatory the health insurance companies have to deal with arguably thousands of applicants per year who had no health insurance, came down with something/had an accident and now it's a rush to get covered.

 

[James]

I fully agree. Unlike auto insurance which is mandatory the health insurance companies have to deal with arguably thousands of applicants per year who had no health insurance, came down with something/had an accident and now it's a rush to get covered.

Yea and likely these are the people saying "I didn't think it was important enough to mention?" then they go file their lawsuit. Leave it California to legislate in their favor, yet I think most of these type of suits falls in favor of the Insurance Carrier?

 

[Crabcake Johnny]

If there was indeed a misrepresentation on the app the client loses.