I had a 4 month old CICA about a yr ago deny the claim . They charged me back the 4 months commission on the rescission. There death claim forms are ridiculous. 6 pages . On contestable claims they want a notorized form to release records. Then they send that stupid form " hey if you don't want ti mess with this we'll give you your money back " . About 8 yrs ago I had a $418 a month trans policy on a 80 yr old $25 k rescinded in the 23rd month. They said the guy smoked . That hurt had I had to pay back near $6800 if I recall .
Problems with SBLI's Bank Verification
- Thread starter Abrasax
- Start date
- 19,949
I know you say that. But CICA says they don't. They advertise they don't.
Notarizing is not an issue. I help my customers with claim forms and notarize the ones that need it.
CICA is not the only company that requires forms be notarized.
- 936
Last data shared with me was SBLI is stopping 2% of applications and for 2 GIACT code responses only. GIACT is the account verification system they use.
1. Negative balance for a certain period of time.
2. Can't verify the identity of the account holder.
Everything else gets through. This has dropped their NTO rate.
I'm working on getting a firm answer on this. Actuaries say this isn't the case but one of SBLI's agent facing managers is telling agents and agencies this.
They should have data on death claims in year 2 where the claim was paid to see if this is an agent was charged back. I hope to get clarity on this soon.
- 19,949
Well, thank you!!
Scott says they told him initially that wasn't the case. Then we had an agent read it in the contract and called them. They told him that it was the case. So Scott called them again for clarity. They told him the second time that they will charge back 100% for deaths in the first 2 years regardless of whether they pay the claim or not. So that's how it was reported to us.
I would love to find out this is wrong.
The reviewing of policies and rescinding policies on living customers is certainly going on.
"The reviewing of policies and rescinding policies on living customers is certainly going on."
That's a big concern for me with writing companies. It caused me to stop writing Oxford and has prevented me from picking up Americo.
I do a fair amount of replacements. I like to know that my policy ain't going to get rescinded or rated 18-23 months from now, especially when replacing good coverage. When that happens, it can really screw the client.
That's a big concern for me with writing companies. It caused me to stop writing Oxford and has prevented me from picking up Americo.
I do a fair amount of replacements. I like to know that my policy ain't going to get rescinded or rated 18-23 months from now, especially when replacing good coverage. When that happens, it can really screw the client.
closing time
Expert
- 30
Yes they are rescinding policies on living clients as this has happened to me.
- 936
Swiss Re (the reinsurer) is randomly reviewing policies with medical claims data. Roughly .5% of the cases are reviewed and there have been some rescisions where they're confident an underlying health issue wasn't disclosed.
It's not SBLI directly doing this with MIB Plan F like Americo does. And they're not doing it right before the contestability period ends either.
