Lexis Nexis Decline for Term Life

Apr 11, 2019

  1. SusieQ2
    Offline

    SusieQ2 Super Genius

    Posts:
    217
    Likes Received:
    5
    Just had a very good client declined for coverage because of Lexis Nexis report. I've known this person for a long time and was shocked with a total decline for a $250,000 term policy. She fit the Preferred Plus category. Now she has a decline on her record. She will call Lexis Nexis and get the results but I want to know how common this is. It has to be credit related from years ago, a lot of Americans have bad things in their credit. She has a clean driving record and no criminal history, they own their own home and are self-employed.

    Now I'm concerned about writing people on these Non-med term policies. Is there a way to find out who uses Lexis Nexis and how to find out more about how it all works. How many years do they go back, etc?
     
    SusieQ2, Apr 11, 2019
    #1
  2. Tahoe Ray
    Offline

    Tahoe Ray Guru

    Posts:
    2,851
    Likes Received:
    534
    State:
    Nevada
    A lot of carriers are starting to use this data for non-med/simplified-type policies.

    I just had a similar case (too many "recent" moves) that resulted in a standard approval when the client was preferred category. The client literally had 3 residences in the last 10 years (from a rental to home ownership to a better home).

    I pre-qualified him with a few other carriers and moved the case to another carrier. Approved preferred.

    I believe that this is going to become fairly common as we move to more "black box" underwriting.
     
  3. NewbieNewbie
    Offline

    NewbieNewbie Super Genius

    Posts:
    178
    Likes Received:
    50
    State:
    Alabama
    I have actually seen a couple if sample reports. Lexi's Nexis claims they are pulling from 4000 data points if I remember. Credit Criminal. Moves. Heck one of the ones I saw showed the guy had an active Arkansas fishing licence. I have also seen some of the data behind the mortality too. A standard class individual with an excellent score has a lower mortality than a preferred plus with a poor score.
    Personally I hate it, but I completely understand why it is being used. I also agree with Tahoe that will be seeing a lot more carriers start to use it.
     
  4. Todd King
    Offline

    Todd King IMO/FMO Owner

    Posts:
    8,407
    Likes Received:
    1,952
    State:
    Virginia
    Nexis Lexis is more a PITA than sliding down a razor blade into a pool of alcohol!

    The problem with them is that they don't have a real set number of years to go back. They'll go back to the day you were born and report if you stole a piece of bubble gun when you were 3 years old.

    We used to have an insurance company (forget who) that used them for contracting purposes. Many agents got declined because of them. The company finally wised up and started using someone else.

    Nexis Lexis seems like they are just in the game to find any kind of dirt on you or the client as they can and they dig very deep to do it. It's so extensive that it seems like it should be illegal!
     
  5. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,393
    Likes Received:
    2,996
    State:
    California
    Just had this conversation with Sagicor as well.

    There is no way for us to field underwrite our people.
     
    Last edited: Apr 11, 2019
  6. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,393
    Likes Received:
    2,996
    State:
    California
    Which companies do not use Nexis Lexis?
     
  7. scagnt83
    Offline

    scagnt83 Worldwide Expert of Everything

    Posts:
    7,102
    Likes Received:
    639
    State:
    South Carolina
    One less thing to need an agent for. If the agents dont know, then they are providing less value than before, makes it easier to eliminate them in the future... yeah, my tin-foil hat is on today perhaps...
     
    scagnt83, Apr 11, 2019
    #7
  8. SusieQ2
    Offline

    SusieQ2 Super Genius

    Posts:
    217
    Likes Received:
    5
    I try never to get a decline on my client's record. This makes that more difficult for sure. I guess I'll have to check each company before I send in an application. I agree with Todd that is so extensive it should be illegal. I have written with Assurity for a long time.
     
    SusieQ2, Apr 11, 2019
    #8
  9. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    19,393
    Likes Received:
    2,996
    State:
    California
    It was Assurity?
     
  10. SusieQ2
    Offline

    SusieQ2 Super Genius

    Posts:
    217
    Likes Received:
    5
    Yes, it's Assurity.

    I talked to one of the new "Instant Issue" term companies today and they use Lexis Nexis as well, however, they have a process at the beginning and if they see someone is going to be declined because of Lexis Nexis they don't send it on through.
     
    SusieQ2, Apr 11, 2019
    #10