Underwriting Question ?

[InsuranceMonkey]

A TIA is a little more extensive in coverage than a conditional receipt.

Say you sign and app with a client and get a TIA. The client dies in a car crash on the way home without having done the insurance exam/bood/urine. As long as the app and medical history were fully completed, accurate, and insurable, even if not at the rate applied for, the claim will be covered. (At a downward adjusted face to meet the applied for premium if the rate went lower.) If however the premium was refunded at time of underwriting because red flags went up in the history, then the client died, it would not be paid.

Conditional receipt also bind coverage, IF the exam/blood/urine and whatever requirements needed are completed. Then if the client died before underwriting, as long as they were insureable at the applied for rate or better the claim will be paid. It is far less broad because all requirements need to be met, while in the TIA that is not so. (Also, if premiums refunded in underwriting it is cancelled.)

Both are usually available only up to about 250k or so. (Company by company it will vary.) Also, the exact terms of each on the app will vary company by company. Mileage may vary.

 

[Deepsea]

If he had died with a valid TIA and the MI had been after the fact like was originally posted I believe they would most likely have paid the claim. It would have done nothing in helping him get issued however. Just if he died.

That above I believe is correct. My manager told me the same thing that you said above. If he would have given me a check and he died then he probably have been covered.

He didnt die, so that's a moot point.

 

[WinoBlues]

Your manager must be an awesome dude also!

 

[Deepsea]

The whole idea is to do what's in the best interest of the client, while protecting the insurance company from adverse selection.

Hopefully the client recovers for his sake, he's a good guy.

Hopefully I can help him or his loved ones in the future.