Farmers Contestable Provision

[johnnyhodges]

Does anybody have an experience with FNWL and a graded policy that went out of force after the 2yrs and was reinstated during the auto reinstate period and the insured died less than one year after reinstate of cancer diagnosed after the policy was issued but before it lapsed. I'm very new to insurance and this is a customers of mine and the insured was one of her relatives, they asked me for advice.

 

[LGilmore]

Have they contacted Farmers?

That's where I would start and finish.

Going to depend on the written terms in the policy and what the home state says about reinstatement. Usually you have to prove good health to be reinstated, but that is my state, have no idea how it would work in yours.

Contact the carrier, if you feel the answer is fishy, contact your state insurance office.

 

[rousemark]

If I am reading this right.. It was a two year ROP graded WL that lapsed after the ROP period was up? As Lgilmore said, usually you have to qualify with EOI for a reinstatement which means there is also a new two year contestable period based on the questions answered on the reinstatement.

However, this was a graded plan to start with.. You would not think the reinstatement would start a new two year ROP . Have never had this come up. Wold be interested in finding out what you learn about this.

 

[johnnyhodges]

Thanks for the feedback, so far what I've found is that with the product FNWLGDB, which is a graded product and has a 2yr period and has a "auto-reinstate period" Basically the policy can be "reinstated" by paying premium due within 30days of last payment being missed. So far nobody knows if that means a contestable period kicks in from a payment being missed and for how long. The policy while out of force pass the 30 grace period was "reinstated" with no forms being required or no phone interview with the insured. I'll keep you posted

 

[VolAgent]

FYI, you can only contest misstatement or misrepresentations by the insured or owner.

If the owner or insured made no statements to reinstate, what is there to contest?