Lapse One Month, Motorcycle Crash the Next.

G.Gordon

Guru
1000 Post Club
3,182
Missouri
Use this in sales situations if it fits.

40 year old client with two di policies, $2k/mo on each, 90e, 24mo benefit on one, 60 month on the other.

April 1, 2013, lapses the 60 mo benefit plan.

May 19, crashes his motorcycle, at least six months completely off work with a few more partial.
- - - - - - - - - - - - - - - - - -
It gets better. In talking with him yesterday, I faxed him a copy of the reinstatement form where it clearly ask about accidental injury. So I circle it and explain, there is no way in hell he's getting it back.

He must have called the co and got his own copy because he just faxed me a cover letter and reinstate form without the "accidental injury" circled and he didn't mark YES on injury. As if they company is going to pay out $2000/mo without checking with the doctor and looking back at the reinstate app and noticing that the fact he wadded up his legs in a motorcycle accident was not disclosed.
 
Last edited:
Classic.

So what are you going to do, point out the error of his ways or send it in and point out the accident to the carrier?
 
He's just doing himself a disservice. Paying premium on something that won't pay out when they get records and figure out they were duped.
 
I'm excusing myself from the issue. I told him to submit it to the HO and pointed out the fact that he did not truthfully answer the accidental injury question.

He acted as if it was an error on his part. Not paying a $170/qtr premium was an error, saying no to a yes question is lying.

He thinks I'll help him get bigger/better di plans when he gets past this... not now. Show me dishonesty one time, we're done. I won't sign him up for anything.
 
I'm excusing myself from the issue. I told him to submit it to the HO and pointed out the fact that he did not truthfully answer the accidental injury question.

He acted as if it was an error on his part. Not paying a $170/qtr premium was an error, saying no to a yes question is lying.

He thinks I'll help him get bigger/better di plans when he gets past this... not now. Show me dishonesty one time, we're done. I won't sign him up for anything.

I am surprised he hasn't taken the stance that it is your fault that the policy lapsed.
 
Considering I've had no interaction with him in almost a decade and they mailed a check to the company on 5/30, date of accident 5/19, kinda leaves me out of any possible realm of fault here. Wonder what made them "remember" to try to pay their premium.
 
Considering I've had no interaction with him in almost a decade and they mailed a check to the company on 5/30, date of accident 5/19, kinda leaves me out of any possible realm of fault here. Wonder what made them "remember" to try to pay their premium.

What took him 11 days to remember to send in a check? Is that how long it took to realize the injury was going to leave him disabled for a while?
 
Oh come on. No one investigates a claim made right after receiving a reinstatement. :goofy:

That is what I explained to him. It is not a matter of answering the questions yes/no and being done with it. No matter what, if they reinstate this plan, then he files a claim, they will pull medical records and or see in the doctors statement that the date of accident was during the lapse window and resend the offer to reinstate or allow him to keep the coverage andt deny the claim. .
 
Back
Top