Do you know why the client died? For instance, if it was by accident then it wouldn't take long at all.
RNA Death Claim
- Thread starter emanTX
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Do you know why the client died? For instance, if it was by accident then it wouldn't take long at all.
- 5,443
My understanding is that an insurance company could still deny the death claim for an accidental death if its investigation uncovered undisclosed health information which would have made the insured an uninsurable risk for that carrier's product. I may be wrong, but I am pretty sure there have been such cases.
Absolutely. There was a case several years ago where a store owner was shot and killed in a robbery. Insurance company rescinded coverage when they discovered information regarding his smoking history that was not disclosed on the app.
- 16,876
I was involved in a death claim as a funeral director (not as the agent) where the claim was being contested and he had run off the road on his motorcycle and hit a tree.
It got paid when I found the paper trail (with his son’s help) that it was actually a replacement policy in KY which made it non-contestible even though the agent didn’t do a replacement form. But the same agent had written the Lincoln Heritage policy several years earlier and wrote him a new policy with a different company a few months before the death.
I always wondered how the case would have turned out otherwise because I was under the wrong assumption that accidental deaths were non-contestible. But apparently if the insurance company can prove they didn’t qualify for the policy that was issued, even an accidental death can be recinded.
- 2,621
The cause of death doesn't matter nor does it change the amount of time or the scope of a contestable death investigation.
I did one investigation where the insured was killed in an auto accident, not his fault. My investigation revealed that he spent 3 months in an alcohol rehab facility within the experience period that the application asked for. The claim was denied and the policy rescinded.
But, like Newby's case, that wasn't the last word. The widow sued on the basis that her husband, who spoke only Spanish, did not understand the questions. The jury took one look at the widow with children and ignored the fact that the agent, who wrote the policy, also spoke Spanish. The widow was awarded the $40,000 death benefit.
I did one investigation where the insured was killed in an auto accident, not his fault. My investigation revealed that he spent 3 months in an alcohol rehab facility within the experience period that the application asked for. The claim was denied and the policy rescinded.
But, like Newby's case, that wasn't the last word. The widow sued on the basis that her husband, who spoke only Spanish, did not understand the questions. The jury took one look at the widow with children and ignored the fact that the agent, who wrote the policy, also spoke Spanish. The widow was awarded the $40,000 death benefit.
I wasn't very clear in what I said, sorry. I was just saying that, if death was by accident, at least they don't have to take the time to investigate that part. They will go back and see if everything was answered truthfully, just like most any insurance company would whether it was by accident or not.
- 5,770
Under promise - over deliver... nothing is worse than having to "walk back" promises that you have no control over to begin with... first two years is a crap shoot... you may have been given incorrect or misleading information during your initial fact finding...
Assure the benis you are doing everything you can to speed and help the process along... that's your job... but put the final burden on the insurance companies decision...
I will be into my 4th death claim in 5 months before the end of this month... 2 of these are situations that I have never had to deal with and on the 3rd one I had a company that was not going to honor a change of beni form sent in 2 years ago because it listed amounts not percentages in the beni break out... I since have had conversations with the claims manager and they a have agreed to honor the request...
Get involved for your clients sake... move things forward and let the claims department know you are active in the claim... this will speed things up and let them know you do care... my upcoming claim has already produced additional sales...
- 15,041
I always told people that it pays to be honest. If they discover you lied or gave incorrect information in the first two years, they can undo the policy. Sadly some people didn't believe me.
- 5,770
The kicker is that in the case of a death you are no longer dealing with the client... so that relationship (hopefully under favorable conditions is lost and the history with it)... as you build relationships with the benis it is completely different...
- 15,041
There was one policy I was beyond glad to see go beyond contestability.
I explained incontestability when he bought the policy, and then every few months he would call me all worried if his wife would get the money when he died. And I would have to explain it all over again and why it was important to be honest.
While I had no reason to believe his answers were wrong, I was definitely glad when it was beyond 2 years and I could tell him they'd pay without having to mention incontestability again.
I explained incontestability when he bought the policy, and then every few months he would call me all worried if his wife would get the money when he died. And I would have to explain it all over again and why it was important to be honest.
While I had no reason to believe his answers were wrong, I was definitely glad when it was beyond 2 years and I could tell him they'd pay without having to mention incontestability again.
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