Agent Lied About Tobacco

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I ran into a person who's previous agent (apparently) lied about tobacco usage, she's almost out of the constability period so I may leave it alone.

If a person dies within 2 years and mis-stated tobacco usage, what does the company do? I assume they adjust the death benefit accordingly, correct?
 
I ran into a person who's previous agent (apparently) lied about tobacco usage, she's almost out of the constability period so I may leave it alone. If a person dies within 2 years and mis-stated tobacco usage, what does the company do? I assume they adjust the death benefit accordingly, correct?

I think that's what they used to do. Now they may rescind.

The veterans will be here soon to enlighten us both.
 
I ran into a person who's previous agent (apparently) lied about tobacco usage, she's almost out of the constability period so I may leave it alone.

If a person dies within 2 years and mis-stated tobacco usage, what does the company do? I assume they adjust the death benefit accordingly, correct?

That's what thee used to do. Now more and more will just not pay at all and return the premiums paid.

But maybe the agent didn't lie? I've got one now whre a competing agent is saying the smoking was misrepresented on one of mine.

Thing is, there was a POS interview. Twice.
 
That's what thee used to do. Now more and more will just not pay at all and return the premiums paid.

But maybe the agent didn't lie? I've got one now whre a competing agent is saying the smoking was misrepresented on one of mine.

Thing is, there was a POS interview. Twice.

Are there any state laws about what the companies are to do in that situation?

What companies do you know of that have rescinded based on tobacco usage?

Are you saying the other agent claimed you marked tobacco when they didn't use it ? Ha.
 
I ran into a person who's previous agent (apparently) lied about tobacco usage, she's almost out of the constability period so I may leave it alone.

How soon is "almost"? If she dies prior to the 2 year mark it will likely be investigated and if tobacco usage is discovered, coverage will be rescinded.

Also, if there was a lapse since the issue and reinstated, the 2 year contestability clock was restarted. In fact, anytime there is a reinstatement the clock is reset

If a person dies within 2 years and mis-stated tobacco usage, what does the company do? I assume they adjust the death benefit accordingly, correct?

An incorrect answer to the tobacco usage question is not a misstatement, it's a misrepresentation - two different things.

Do not assume anything. This is the company's get out of jail free card. There is absolutely no reason the company has to do anything to accommodate the beneficiary in this case.
 
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How soon is "almost"? If she dies prior to the 2 year mark it will likely be investigated and if tobacco usage is discovered, it will be contested.

Also, if there was a lapse since the issue and reinstated, the 2 year contestability was restarted.

An incorrect answer to the tobacco usage question is not a misstatement, it's a misrepresentation - two different things.

Do not assume anything. This is the company's get out of jail free card. There is absolutely no reason the company has to do anything to accommodate the beneficiary in this case.

Right. I'll write her up a smoker policy.

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Have you ever seen a policy be rescinded due to the above situation?
 
I think this is mostly incorrect. Sure theres been a few cases were the company recinded but i'm sure in many cases if the company would have issued the policy anyway they will pay a reduced benefit based on smoker rates. Think about how many people lie on policies online with globe life are aarp or even to agents. This would 10's of thousands of policys recinded. I got to believe we'd be reading 100's of stories not just 1 or 2.
 
Link please? To the forum post/the AL situation.

MUTUAL SAVINGS LIFE INSURANCE COMPANY v. Mutual Savings Life Insurance Company). - FindLaw

Note the misrepresentation in the Taite case was about heart surgery, but for the sake of this discussion that is irrelevant. When a short claim is evaluated for possible misrepresentation, All health related questions have the same weight.

If you would like to see some cases that explicitly involve tobacco usage, I'm sure there are hundreds of them. I'll dig a few up if you want..

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I think this is mostly incorrect. Sure theres been a few cases were the company recinded but i'm sure in many cases if the company would have issued the policy anyway they will pay a reduced benefit based on smoker rates. Think about how many people lie on policies online with globe life are aarp or even to agents. This would 10's of thousands of policys recinded. I got to believe we'd be reading 100's of stories not just 1 or 2.

Just because you don't read about them, doesn't mean they don't exist. Why would this make news?
 

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