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I noticed that an Oxford policy has a question that asks the insured if he has ever applied for another life insurance in the last 2 years.
Last week, I had a discussion with the Aptical person on whether they actually disclose to MIB that a prospect attempted to get insured, much like on a credit report after you applied for credit. Her answer was that they do, but they do not disclose the result of the interview (that the person was declined or downgraded, etc). We agreed that a prospect may decline to take the coverage for several reasons besides denial or downgrade, maybe they had no money at the time, etc.
Has anyone out there experienced something to the contrary where an insurer held it against the prospect because he had been denied or downgraded for coverage at an earlier time?
Why does the insurance co even ask whether the prospect has applied for coverage in the last 2 years?
Last week, I had a discussion with the Aptical person on whether they actually disclose to MIB that a prospect attempted to get insured, much like on a credit report after you applied for credit. Her answer was that they do, but they do not disclose the result of the interview (that the person was declined or downgraded, etc). We agreed that a prospect may decline to take the coverage for several reasons besides denial or downgrade, maybe they had no money at the time, etc.
Has anyone out there experienced something to the contrary where an insurer held it against the prospect because he had been denied or downgraded for coverage at an earlier time?
Why does the insurance co even ask whether the prospect has applied for coverage in the last 2 years?
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