How commonly do agents lie on apps?

Oct 24, 2007

  1. Newby
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    Is it REAL common for agents selling final expense to lie on applications? Lately I have run into a lot of agents talking smokers into signing apps as non-smokers. The clients were told what the insurance company didn't know wouldn't hurt them.

    Today I had a little old lady show me a policy that was issued yesterday for a small final expense. She told me openly that she had a stroke 4-months ago. I check the application and sure enough it is checked "no"

    I asked her if the agent asked her if she has had a stroke and she said he didn't ask her ANY health questions at all. She also has diabetes and lives in assisted living facility. He checked ALL her health questions as "no."

    I know we all want to make the sale but is this kind of stuff common?

    The one that pisses me off is a couple of smokers were sold out from under me by an agent that signed them up with the same company but as non-smokers.

    Is there no honor?
     
    Newby, Oct 24, 2007
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  2. GreenSky
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    That kind of thing only happens in Southern Indiana.

    I've questioned forum members on their ethics for what are likely minor issues - such as not selling the best price when all benefits are equal. Either you are honest or not.

    Unfortunately, there are a lot of VERY dishonest agents out there making all of us look bad.

    I'm glad that I can sleep well at night knowing that I always do what is best for my client - not what makes me the most money.

    Rick
     
    GreenSky, Oct 24, 2007
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  3. Superchief
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    How often do agents write apps? Lol!

    I can firmly say, that I have never submitted an app with any falsehoods whatsoever. As a matter of fact, I use the health questions and any phone interviews as a tactic to build respect for me as an agent versus unscrupulous agents.

    Basically...

    "Alright Ms. Jones, in order to qualify for this rate there are some health questions on the application. As an agent I'm supposed to verify them with you. In addition, after I submit the app, XYZ Company is going to contact you for a short telephone interview to verify the application. This is in order to protect you against unscrupulous agents that don't ask the health questions trying to sneak one by in order to make a fast buck. I hope you don't mind, but I prefer not to do business that way. After the phone interview is complete, they will verify your answers with the application and as long as everything matches up, we'll have this new policy in place with a few business days. Sound good?"
     
  4. The New Guy
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    You could mention this behavior to the Director of the the Assisted Living Facility, and perhaps, get that agent banned from doing business there. There is always more money to be made, taking the high road. But then, you already knew that.
     
  5. senior-advisor-indiana
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    Funnyy you say that. Just 6 months ago I ran into a lady that had a stroke within 12 months. Some banker's life agent sold her a final expense and cheked no on the stroke question. I told her about it and told her se needed a graded policy or she might be S.O.L. Well, she hasn't returned my phone calls yet so I guess she is playing the lottery with her policy.

    Maybe agents only lie about strokes?
     
  6. CHUMPS FROM OXFORD
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    Easy answer. I never answer the medical questions on the app. The applicant does. Sure, you get a few surprises, but nothing major.
     
  7. somarco
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    My guess would be quite a lot of agents fabricate apps. In my prior life I worked with literally hundreds of agents over several states. I can say the majority of them were hucksters looking for easy ways to make a buck.

    I don't think things have changed that much.

    We do not have a level playing field. Is it any wonder the HO would like to find a way to do away with agents?
     
    somarco, Oct 25, 2007
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  8. Newby
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    I think you're right. I hate to think of our chosen profession that way but there is no accountability out there and I know many are desparate to make the sale.
     
    Newby, Oct 25, 2007
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  9. somarco
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    There is accountability, but only for the ones who are really bad . . . or really stupid.

    It is very frustrating but the only thing you can do is maintain your integrity. The people who SHOULD be your clients will become so.

    After all, do you really want someone who will lie on the application to get a better offer?

    I don't, and I doubt you do either.
     
    somarco, Oct 25, 2007
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  10. Newby
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    No but what kind of sucks is their lieing sometimes pays off.

    Example: I quoted the correct smoker rates to clients. They shopped me and agent B said he will write them up with the same company at non-smoker rates...which he did.

    Result: The lieing agent got the commission, the lieing clients got a big discount and if they live more than two years, they are free and clear.

    I know that in the long run the agent will get what's comming to him but the clients will probably always be better off for what they did. That part just sucks.
     
    Newby, Oct 25, 2007
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