This Sounds "Clean-Sheeted" to Me...

[Newby]

If there is no penalty for lying on an application after two years the client might as well lie to get approved. If he is not able to get a level policy, without lieing, he has nothing to lose as he is going to get a ROP. if he dies within two years most of the time anyway

There is a penalty. Insurance fraud can result in jail time.

Plus there's that whole hell thing.

Plus the insurance company can rescind the policy for up to two years regardless of death or living.

But after two years they HAVE to pay. They may be paying you in jail though.

 

[theinsuranceman]

If there is no penalty for lying on an application after two years the client might as well lie to get approved. If he is not able to get a level policy, without lieing, he has nothing to lose as he is going to get a ROP. if he dies within two years most of the time anyway

Plus his rates would be cheaper.

 

[TDFnCali]

There is a penalty. Insurance fraud can result in jail time.

Plus there's that whole hell thing.

Plus the insurance company can rescind the policy for up to two years regardless of death or living.

But after two years they HAVE to pay. They may be paying you in jail though.

Well just to clarify....if they are paying out anything, then the "you" that u referenced above would be dead, so u couldnt go to jail even if u lied.

 

[rousemark]

Don't how the incontestability clause in a policy may read in other states but in Tennessee it reads, "After two years we can not contest this policy for any reason other than non payment of premiums."

That pretty clinches it.. They can't even sustain an allegation of fraud.