Lexis Nexis Decline for Term Life

[SusieQ2]

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?

 

[Tahoe Ray]

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?

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.

 

[NewbieNewbie]

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.

 

[Todd King]

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!

 

[WinoBlues]

Just had this conversation with Sagicor as well.

There is no way for us to field underwrite our people.

 

[WinoBlues]

Which companies do not use Nexis Lexis?

 

[scagnt83]

Just had this conversation with Sagicor as well.

There is now way for us to field underwrite our people.

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...

 

[SusieQ2]

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.

 

[WinoBlues]

It was Assurity?

 

[SusieQ2]

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.