Foresters Possible Fraud

[VolAgent]

The burden of documentation falls on the insured, not on the carrier. Others have already shared real life experiences of this happening. Plan F might be BS, but what I'm telling you is not.

What policy have you been reading? To rescind the burden is upon the insurance company, not the insured or beneficiary.

Now, JD is absolutely correct. Very few if any small policies that are rescinded ever see a negotiating table, much less a court room. So while the burden may be on the insurance company, they are well aware that they will almost never be challenged on a recession.

I believe Rousemark posted about a policy that the family did fight the recession. That is almost certainly the exception and not the rule.

 

[rousemark]

What policy have you been reading? To rescind the burden is upon the insurance company, not the insured or beneficiary.

Now, JD is absolutely correct. Very few if any small policies that are rescinded ever see a negotiating table, much less a court room. So while the burden may be on the insurance company, they are well aware that they will almost never be challenged on a recession.

I believe Rousemark posted about a policy that the family did fight the recession. That is almost certainly the exception and not the rule.

Have known about a couple but it was years ago.. One involved a $1500 claim. I was told that the company offered to settle for $1000 right before going into the courtroom and the beneficiary turned it down. Company won at trial and the beneficiary received nothing.

 

[VolAgent]

Have known about a couple but it was years ago.. One involved a $1500 claim. I was told that the company offered to settle for $1000 right before going into the courtroom and the beneficiary turned it down. Company won at trial and the beneficiary received nothing.

Ouch, that is painful.

I believe there are some companies that are overly aggressive in rescinding policies. I suspect that many would probably settle if the family actually tried to fight.

Of course, that is just my belief.

 

[shonceman]

"Simplified issue" premiums are formulated to handle some anti-selection. That's why they generally only ask about diagnosis and treatment, whereas fully underwritten apps will ask about symptoms as well. I can't imagine a carrier whose primary business is FE paying out the money for this service. So, have you noticed whether this is a more prevalent practice for carriers, like Foresters or TA, who also do a fair amount of larger face amount, fully underwritten policies?

 

[backinthesaddle]

And Foresters just rescinded a 19 month old policy. No notification prior to the rescission. Fat ass chargeback. Gotta love it.

 

[FinalExpenseDojo.com]

Sounds like a lot of doom & gloom in this thread. Question: all agents that have had this happen, how often does it happen? 1 in every 100 or 200 policies? I think that's probably the most important question.

 

[Agentguy5]

Sounds like a lot of doom & gloom in this thread. Question: all agents that have had this happen, how often does it happen? 1 in every 100 or 200 policies? I think that's probably the most important question.

The fact that you are reading agent after agent complaint on a public forum about Americo and Foresters rescinding policies, should scare the heck out of you brand new "regional directors", who are stuck pimping these products.

 

[Baseball7]

Doug in all fairness to the carrier if the policy was rescinded they should've never had it all along. Not to mention this forum is hardly a fair sample size of the industry.

I would honestly rather have a policy rescinded and eat a chargeback then have to explain to the family a rescinded death claim.

 

[VolAgent]

Doug in all fairness to the carrier if the policy was rescinded they should've never had it all along. Not to mention this forum is hardly a fair sample size of the industry.

I would honestly rather have a policy rescinded and eat a chargeback then have to explain to the family a rescinded death claim.

That assumes every rescinded policy really was a material misrepresentation.

I don't assume all insurance companies are evil, but I'm not naive enough to believe they all have clean hands either.

How many rescinded policies are ever fought by the family? At least then there is a denied death benefit and real financial harm. If the person is still alive, just how much financial damage was there, could you ever get an attorney to fight it for you?

Yes, many policies that are rescinded really should be, but how many are marginal and the company decides to roll the dice?

 

[bboman23]

The fact that you are reading agent after agent complaint on a public forum about Americo and Foresters rescinding policies, should scare the heck out of you brand new "regional directors", who are stuck pimping these products.

He can offer the same companies you can. And forget the fancy titles, he has better levels than you and less up lines. If Brad is listed as a regional director of 360, and you're under him...what's that make you?