Smoker Getting Non Smoker Rates

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I was reviewing a prospect life insurance policy that they just took out thru WS. The policy had her as a non tobbaco user when she said she told the rep she was tobbaco. What should she do ? what are her risks if she keeps non tobacco statis.
 
I was reviewing a prospect life insurance policy that they just took out thru WS. The policy had her as a non tobbaco user when she said she told the rep she was tobbaco. What should she do ? what are her risks if she keeps non tobacco statis.

If you are replacing the policy you should call the company (Western Southern?) and verify that the policy was issued incorrectly. They will make the correction and probably want payment for the additional back payments. Sometimes they will canel it and return the premiums paid and will fully chargeback the agent that made the mistake.

The policy would NOT have paid the death claim if she died within the contestibility period. The company may not have even offered coverage at all if there were other lung issues.
 
I've had many many cases that I have spoken to over the years similar to this. Quoting table 6 and getting a preferred rate approval--I would call the underwriter, and just tell them to order an aps because information was omitted on the part2. Same situation here, plus you are cutting the commission in half...
 
If you are replacing the policy you should call the company (Western Southern?) and verify that the policy was issued incorrectly. They will make the correction and probably want payment for the additional back payments. Sometimes they will canel it and return the premiums paid and will fully chargeback the agent that made the mistake.

The policy would NOT have paid the death claim if she died within the contestibility period. The company may not have even offered coverage at all if there were other lung issues.

I read somewhere where they would pay the face amount minus the difference in cost of a smoker vs non smoker

They would only deny the claim within the contest period if the company would have actually "declined" coverage

Thats what I thought I read years ago when I got my license- might be wrong tho'

Do insurance actually order copies of an autopsy report or do they require just a death certificate?
 
I read somewhere where they would pay the face amount minus the difference in cost of a smoker vs non smoker

They would only deny the claim within the contest period if the company would have actually "declined" coverage

Thats what I thought I read years ago when I got my license- might be wrong tho'

Do insurance actually order copies of an autopsy report or do they require just a death certificate?

Its state specific on what they do on smoker vs non-smoker in the two years. And you better plan on thinking they'll want the autospy if its within two years.
 
It's going to depend on each state. We used to just pay a smoker's DB instead of NS DB, the state said no. Most apps have an extra WA disclaimer now that states that it is considered fraud, which makes the contract null and void. Each state has different rules on this subject.
 
I read somewhere where they would pay the face amount minus the difference in cost of a smoker vs non smoker

They would only deny the claim within the contest period if the company would have actually "declined" coverage

Thats what I thought I read years ago when I got my license- might be wrong tho'

Do insurance actually order copies of an autopsy report or do they require just a death certificate?

That is how it was back in the day, mostly.

Yes, in the contestable period they can and do order APS going back years, sometimes decades. Had a young girl die in an auto accident. They interviewed a lot of people to see if it was suicide.
 
If you are replacing the policy you should call the company (Western Southern?) and verify that the policy was issued incorrectly. They will make the correction and probably want payment for the additional back payments. Sometimes they will canel it and return the premiums paid and will fully chargeback the agent that made the mistake.

The policy would NOT have paid the death claim if she died within the contestibility period. The company may not have even offered coverage at all if there were other lung issues.

Some states are different, that is not true in WA state.

Tabacco does not apply to the contestibility period at least not in WA.

The benefit will be prorated if she dies and they find out she smokes to what *said premiums* would have gave her coverage wise if they would have known she smoked.
 
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