jeffdcar
Expert
- 45
What is the date carriers can look back from if client passes in the first 2 years, is it the application date? or date of death? thanks
2 Yr Contestable Period
- Thread starter jeffdcar
- Start date
- 6,995
Effective date I would imagine. But it might be app date.
If a client dies in the first 2 years the policy is in force the company can look back to whenever they need to to see if there was something that should have been disclosed.
If you're asking when the contestability period starts, it is the date of issue.
- 25,065
Two year contestability starts from the date they answered, dated and signed the application. Unless there was a good health statement. They have not attested to anything else.
- 19,053
That's not any of the companies I have interpret it. They all say from effective date.
- 25,065
I have not had a claim with in days of issue or application so no first hand knowledge. When I saw the post I call one of the claim reps at UH and asked them. Other companies may do it differently i guess.
- 19,053
I've had 3 that come to mind right away. One the app was taken on July 31st with first draft to be on Aug 20. Was approved on Aug. 6. Guy died two years later on Aug 8. Even though the app date and the approved date was more than 2 years the company said it was contestable since he didn't make it to Aug 20. The claim was paid but it took almost 4 months to be paid.
Another application was taken in late Jan. First draft to be Feb 28th. Approved in early Feb. The guy died in mid Feb 2 years later. Contested and rescinded.
Another the guy died 1 day before the 2 years was up from the first payment. 2 years and 3 weeks after the application. That one was also contested and paid. Again it took over 4 months to be paid. had he made it one more day the family could have been paid within 24 hours.
Now, Americo says that the person is covered from the day it's approved. For example, I wrote one last week with Americo that's not going to be drafted until Oct. 25. it's already approved and Americo says he's covered even though he hasn't paid.
I've never had anyone die in that period to test what they say and I hope I never do.
Last edited:
- 16,926
I've got one right now that was 3-weeks short.
Had an Assurant that was one day short a few years ago. Guy had been dead in a house for weeks and the coroner really guessed at the death date. He guessed one day too early and caused a huge delay on the claim.
Had an Assurant that was one day short a few years ago. Guy had been dead in a house for weeks and the coroner really guessed at the death date. He guessed one day too early and caused a huge delay on the claim.
That's always been my understanding. Issued means when the first premium was paid. THAT'S when the clock starts ticking. I bet a dollar to 10 that it's the same even if he's already "covered".
- Thread starter
- #10
jeffdcar
Expert
- 45
Let me rephrase the question: Policy was issued April 1, 2014. Client dies Oct 1, 2014. Sometime between April 1 and Oct 1 client is diagnosed with dementia. Can insurance company legally ask to see health history from April 1- Oct 1. If they can, I am assuming they still will have to pay the claim since dementia wasn't diagnosed until after the issue date.
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