Agent Lied on App

[Laying3]

As at a prospects house. He just took out an Americo policy 2 months ago. He uses oxygen. Has a big sign on the door of the apartment and tanks everywhere. He showed me the policy, I showed him where the agent lied on his app and talked about contes ability.

How would you handle this? Report the agent? Report to Americo?

Just looking for advice.

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Good Wes is the guy was turning 65 and I wrote a medsup

 

[peteybear]

If they take the policy away all he can qualify for is a 2 yr wait.If you turn him or the agent in he loses the policy. If he dies in first 2 yrs all he gets is his money back.If you switch him to a GI he'll pay a higher price an start the 2 yr period over.The client didn't lie and shouldn't be penalized. I'd leave it be.

 

[Laying3]

But if he goes in the first 2 years his family is stuck. Family should be aware. Writing fraud business hurts us and the clients that believes he has coverage.

 

[Rearden]

If they take the policy away all he can qualify for is a 2 yr wait.If you turn him or the agent in he loses the policy. If he dies in first 2 yrs all he gets is his money back.If you switch him to a GI he'll pay a higher price an start the 2 yr period over.The client didn't lie and shouldn't be penalized. I'd leave it be.

The client runs the risk of rescission.

Americo may do an after-the-fact, more in-depth underwriting review during the first two years of the policy, and can potentially rescind the policy and refund the premiums.

It pays to be ethical; since the policy is in its infancy, replace it with a competitively-priced GI application.

 

[jdeasy]

As at a prospects house. He just took out an Americo policy 2 months ago. He uses oxygen. Has a big sign on the door of the apartment and tanks everywhere. He showed me the policy, I showed him where the agent lied on his app and talked about contes ability.

How would you handle this? Report the agent? Report to Americo?

Just looking for advice.

----------

Good Wes is the guy was turning 65 and I wrote a medsup

I don't know how that got through underwriting with Americo but stranger things happen I suppose?

But maybe the agent isn't the one that lied? Ever think about that?

Why did the guy decide to come clean only with another agent involved?

 

[peteybear]

It's a crappy situation. The chances of americo doing an investigation and rescinding while the clients alive are almost nil.The client did nothing wrong.

 

[jdeasy]

It's a crappy situation. The chances of americo doing an investigation and rescinding while the clients alive are almost nil.The client did nothing wrong.

Maybe not? But maybe the client is the one that lied?

 

[Rearden]

It's a crappy situation. The chances of americo doing an investigation and rescinding while the clients alive are almost nil.The client did nothing wrong.

What's crappy about it?

It's a small chance of happening until it does happen.

Check out what 5-Star did here to one of my clients ----> http://www.insurance-forums.net/for...r-policy-rescinded-after-5-months-t53664.html

Bottom line the client is at risk of an after-the-fact rescission for the next 22 months.

Solve the problem and go GI or near-GI if the client believes it is in his best interest.

 

[briko3]

You explained the problem. Ask him if he wants you to solve it. If not, move on.

 

[Agentguy5]

As at a prospects house. He just took out an Americo policy 2 months ago. He uses oxygen. Has a big sign on the door of the apartment and tanks everywhere. He showed me the policy, I showed him where the agent lied on his app and talked about contes ability.

How would you handle this? Report the agent? Report to Americo?

Just looking for advice.

----------

Good Wes is the guy was turning 65 and I wrote a medsup

Replace the policy with something competitive, if you can, and move on.

Don't be a rat!