Prospective Client’s Application Declined

[theleadingagent]

ok so I can help but feel horrible because I just discovered a prospect client who only gave me a couple meds; no other health issues (allegedly) - just got declined.

Idk what to do now. The company I submitted the app said they discovered a rx history not listed on the app and now they won’t even consider this applicant for their other products and this is one of the companies with more liberal underwriting so I’m really taken aback.

Idk if this is some error, if applicant didn’t hear me when I asked if any diagnoses with the numerous conditions listed in the app; or if applicant conveniently left out important medical diagnoses

What do you do when a clients app declines?

 

[fed up]

Sometimes they lie and there is not much you can do. Give it 6 months and try again but in all liklihood they are not getting a standard policy for some time. Next....

 

[theleadingagent]

Ok thanks fed up.

The crazy thing is this applicant has another policy with another coMpany so I was confused as to how that one was obtained while this one was denied.

I did simplified issue

 

[theleadingagent]

Sometimes they lie and there is not much you can do. Give it 6 months and try again but in all liklihood they are not getting a standard policy for some time. Next....

When you say give it 6 months and try again you mean with another company right?

If a company declines an applicant once, they are permanently declining from future application?

 

[pfg1]

This is where field underwriting becomes very important, and also where having access to many carriers can help alot. I usually have a good idea when I talk to a client if they will be insurable, and often who they might be a good fit with, and who not.

Some agents out to make the sale as quick as possible (one appt close type scenarios), they often jam all their prospects into the same carrier (or few carriers) and may not field underwrite well or at all. If they end up with a decline, that person will have a much harder time in the future if they choose to apply again.

My market and clients are likely very different than what the one and done sales guy has, which seems to be the process for the FE or SI folks. I rarely ever have an issue with a client not disclosing everything to me - so I can search for the best fit. Only had 1 decline last year, and we knew it was a very long shot to begin with... but he wanted to try.

The more you learn your business model, the better your placement will be.

When you say give it 6 months and try again you mean with another company right?

 

[theleadingagent]

I agree.

This applicant only gave me two very benign current meds though and answered “no” to the ‘have you ever been diagnosed with.....’ type questions during the app.

I guess if I am honest sometimes I do feel “rushed” because I tell them it will only take a few minutes which really is more like 30-60 min.

In the future I’m going to take my time on the medical part just to make sure it’s not something I’m missing

I’m just thinking maybe the applicant interpreted the medical questions to mean “current” and not “past history/have you ever” so maybe they weren’t flat out lying just maybe they didn’t understand or maybe they have amnesia and forgot - idk

 

[KOC Agent]

@theleadingagent Explain what happened then write them with a GI carrier and revisit in 6 months. If they're not interested, move on.

 

[theleadingagent]

Thanks for the feedback

 

[theleadingagent]

Sorry I have one more question.

Do you think the company declined him because he left out information or because the information they found was major risk or both?

 

[pfg1]

Sorry I have one more question.

Do you think the company declined him because he left out information or because the information they found was major risk or both?

You will have to find out why. We can't speculate at all. They will tell the client why they were declined, but they may not tell you.
In my experience, if something pops up that wasn't disclosed they typically investigate it, not just decline them automatically for non disclosure. But my experience is only with fully underwritten policies.