Ok here is the situation: 44 year old lady who quit smoking 2 weeks ago. Already has a small policy through another agent, approached me and wants to add to it. She wants to get non-smoker rate. She said her other agent told her that once she has been off tobacco for about a month, all traces will be out of her system and that she can have a blood test taken to prove it and submit that to her existing insurance company and they will allow to add to her policy at the non-smoking rate. She is giving me the opportunity to see if I can match this option that her existing agent has offered her...does anyone know a carrier that will allow something like this?
Someone who Has Just Quit Smoking....
- Thread starter Nikita
- Start date
- 29,485
Smells fishy to me. Why would it be any different than on new business? I'll bet they go back a year and he's clean sheeting the app.
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What company is her current coverage with?
- 18,987
He's probably right about it not showing up from an exam or swab but I'm sure that's not right as to the question on the application.
I've never seen an application that asked for less than 12 months on no tobacco use.
Most of the companies I write will lower a person's rate to non tobacco after 12 months of no tobacco use. If you present that option to her make sure it's with a company that will do that. All won't. I know LH is one that won't.
It seems the other agent is trying to pull a fast one. I had a Bankers agent tell one of my clients last year that she could get him non tobacco rates since he only smoked half a pack a day. of course once we brought that to the attention of the Indiana DOI the agent said she never told him that and claimed he was the one lying.
The other agent is pulling a fast one.. Just because it might not show up in a blood test after a month, that doesn't mean the company won't find out she had smoked in the last year if she dies during the contestable period of a new policy. If she has been to her DR. I am sure she admitted she was a smoker and that would be in her medical record. Don't take chances on clean sheeting.
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Is smoking non-contestable after 2 years.
- 16,880
Contestibility for everything other than misrepresenting age or gender is over after two years. But the crime of fraud is not. That's why you have to read them a fraud statement instead of reading a contestability statement.
It's unlikely that an insured is going to be punished for small policies but a little more likely that an insurance company seeing a pattern of fraud over and over with an agent might file charges against him if it were obvious and easy to prove.
The crime of insurance fraud does not end after two years. Most applicants will want to be honest if you set the stage that they need to be. Explaining to them that they are free and clear after two years is not completely accurate and does not set the stage for honesty.
Not accusing you of anything for asking the question but just giving the long answer. Lots of clean -sheeters out there. They usually don't last too long in this biz.
Newby the chances of an insurance company even looking into a claim after 2 yrs is almost zero outside as you said misstatement for sex or age. Now if you had 5 claims in a row of lung cancer of 3 yr old policy's then they might get suspicious.As agents write down what they tell you and never lie. I tell all prospects up front give me all your medicine bottles as if you lie you're wasting both of our times.
- 16,880
No but where agents get caught is when they keep getting exposed as clean sheeting apps with or without a death involved. Takes a few occurrences but some companies do wake up and terminate the agent with cause. If it was bad enough I could see them filing charges for it. Never known of a case where it happened though.
