Decline Question on Application

[Speck]

I notice on SNL's application as well as some of the others have the "declined for other insurance" question. Can they not see that on their MIB report, and wondering why it even matters? I mean, they could have been declined by a no-exam life company that will turn you down for any single issue you have like, insulin use, copd, heart bypass at any time, stroke at any time, etc. In the infamous words of Hillary Clinton, "What difference does it make?"

 

[UW Guy]

I notice on SNL's application as well as some of the others have the "declined for other insurance" question. Can they not see that on their MIB report, and wondering why it even matters? I mean, they could have been declined by a no-exam life company that will turn you down for any single issue you have like, insulin use, copd, heart bypass at any time, stroke at any time, etc. In the infamous words of Hillary Clinton, "What difference does it make?"

Decline might not have been for an MIB reporting reason. Sometimes they may have been declined/reduced by a life carrier for financials, insurable interest issues, there are others...

And some carriers (not to mention the occasional lax underwriter) may not code something so this another safeguard to make sure they have something over the insured's signature.

 

[jacobtn]

Decline might not have been for an MIB reporting reason. Sometimes they may have been declined/reduced by a life carrier for financials, insurable interest issues, there are others...

And some carriers (not to mention the occasional lax underwriter) may not code something so this another safeguard to make sure they have something over the insured's signature.

They won't be doing financial suitability on SNLs app or any other FE app for that matter. That only comes into play on traditional Life. Good point however. That would be ridiculous for someone who is declined on a term policy because they filed a bankruptcy and don't have sufficient income, and this caused them to be knocked out of a FE product because they ask about previous declines.

 

[UW Guy]

They won't be doing financial suitability on SNLs app or any other FE app for that matter. That only comes into play on traditional Life. Good point however. That would be ridiculous for someone who is declined on a term policy because they filed a bankruptcy and don't have sufficient income, and this caused them to be knocked out of a FE product because they ask about previous declines.

Bankruptcy and suspicious financials are coded with MIB but it's usually just to prevent antiselection (you know, the guy who files and needs to get out from seven figures of crappy debts). Obviously FE won't care but it is another way to get declined that might not trip MIB.

So you may have had someone who tried a traditional carrier, washed out and needed to go FE. It's not an everyday thing but it's likely enough to require asking.

 

[pcbinsurance]

"I notice on SNL's application as well as some of the others have the "declined for other insurance" question."
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I believe they are doing away with that question in the near future.