Incorrect Home State?

[russelltw]

Had a referral who lives in FL, but has a residence in NC. Files taxes in FL. She has AARP Plan J, but original agent told her at application to put that she lives in NC to get a lower rate.

Have any of you run into this? I thought we were supposed to use the legal address (where they file taxes) as the home address. What would be the consequences for client? I am guess the carrier would just change the rates to reflect the appropriate home state, but nothing more.

 

[Todd King]

Had a referral who lives in FL, but has a residence in NC. Files taxes in FL. She has AARP Plan J, but original agent told her at application to put that she lives in NC to get a lower rate.

Have any of you run into this? I thought we were supposed to use the legal address (where they file taxes) as the home address. What would be the consequences for client? I am guess the carrier would just change the rates to reflect the appropriate home state, but nothing more.

According to the carrier, it could be a situation of how long they stay in a particular state. In other words, if they are in NC more than 6 months of the year they might approve that as the legal address. Could be.

 

[russelltw]

I guess for most, it's an easy way to pick which one is cheapest and apply within that state. Who is going to ask the client to prove they live in a particular state 6 months and 1 day?

 

[MatthewC]

The designation of home state is written into Social Security law. It is the state in which you vote and pay taxes. It is illegal to claim a policy and price based on an address that is not your home address. IF one of the states involves is Wisconsin, MI, MA there are further issues for the agent because it is illegal to sell a person a Med Sup that cannot be sold in their state.

The right question is, what is the penalty for lieing on an application? I think you have to ask the insurance company to get that information.