Is It "illegal" to Submit Two Applications at the Same Time?

Pancur

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165
IL
Hi,
I've always known that you as an insurance agent should not submit two or more health insurance applications to different companies at the same time.
However I've never give it a thought why. Now my customer's application got stuck in underwriting with Blues and he wants me to submit a new app with Aenta.
Can someone tell me if this is really forbidden and why or maybe it is OK to submit a new app in this case.
Thank you in advance.
 
I have even submitted 3 at one time in the past.
If someone wanted a 9.01.10 eff date, and, I see conditions/meds that might decline/rate up, given that today is 8.09.10, I might submit 2 apps.
You can submit as many apps as you wish.
 
Hi,
I've always known that you as an insurance agent should not submit two or more health insurance applications to different companies at the same time.
However I've never give it a thought why. Now my customer's application got stuck in underwriting with Blues and he wants me to submit a new app with Aenta.
Can someone tell me if this is really forbidden and why or maybe it is OK to submit a new app in this case.
Thank you in advance.


NO, it is not forbidden or illegal. One advantage is you may get one approved and the other not, and the applicant may be able to answer legally correct that they have not been declined. If you do one at a time after you get an initial decline the applicant would have to answer that he/she was declined or rated if that was the case. The only con is they would have to pay the apps fees on both unless they apply online. If you do one then wait, you have to start the process all over and the wait time again. Not a problem doing two simultaneously.
 
Not illegal but may not be a good use of time and money. I don't know about your state, but in GA all carriers except two require cash with app. At (pick a figure) $400/app your client could be out $1600 while waiting on a response.

Some carriers, like Golden Rule, send a refund check within one business day after the app is declined while others like Blue make you beg and then send the money 2, maybe 3 months later.

Some, like GR & Blue, take the money out immediately while others wait until they are approved.

It takes time to complete multiple apps, a lot more time than a proper pre-screen.
 
Hi,
Do you know what other companies take the money with the app? I'm a new agent and I'm in Illinois.

Thanks,

Not illegal but may not be a good use of time and money. I don't know about your state, but in GA all carriers except two require cash with app. At (pick a figure) $400/app your client could be out $1600 while waiting on a response.

Some carriers, like Golden Rule, send a refund check within one business day after the app is declined while others like Blue make you beg and then send the money 2, maybe 3 months later.

Some, like GR & Blue, take the money out immediately while others wait until they are approved.

It takes time to complete multiple apps, a lot more time than a proper pre-screen.
 
Hi,
Do you know what other companies take the money with the app? I'm a new agent and I'm in Illinois.

Thanks,


We all want to be helpful but you really need to get adequate training on the products you are going to offer BEFORE you start offering your service to clients or you will step in something you can't get out of either for yourself or your client. You cannot get your product knowledge off a forum or chat room. If you're going to be a professional agent you have to do the work to be a professional, if you plan to dabble get a really good E&O policy or stay away from what you don't want to take the time to learn the hard way, by reading the product material and attending training sessions. Otherwise you are doing an injustice to yourself and those you intend to serve. Good luck.
 
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