Dangerous Hobby

smokin goose

Guru
1000 Post Club
2,960
Kentucky
I dropped off my ATV to get fixed at a garage yesterday. We got to talking about life insurance which he stated he needs, because his bike doesn't like doing under 100mph.

I know accident policies usually exclude racing, committing a crime, etc. But would a life policy cover him if he wrecked going that fast??
 
I dropped off my ATV to get fixed at a garage yesterday. We got to talking about life insurance which he stated he needs, because his bike doesn't like doing under 100mph.

I know accident policies usually exclude racing, committing a crime, etc. But would a life policy cover him if he wrecked going that fast??

Yup, after two years suicide is covered. 100%
 
Yup, after two years suicide is covered. 100%

The only caveat to that which immediately comes to mind is the common exclusion for claims arising during the commission of a felony. In the Commonwealth of Virginia that type of speed does become a criminal offense, but not a felony. Some states may be an exception to that.
 
If his bike has trouble doing less than 100, I bet he has a few citations over it. That is going to be the issue. He might have a hard time getting through underwriting to even find out about what happens at claim time.
 
If the hobby was disclosed at the time of underwriting and accepted, he's good to go. I get MVRs on all motor sport hobbiests/racing just to make sure the need for speed doesn't spill over to public roads.

Should he end up a claim due to extreme poor decision making skills, that's not an exclusion in any policy. That happens all day every day, we just try to catch it on the front end before we have to pay on it.
 
If the hobby was disclosed at the time of underwriting and accepted, he's good to go. I get MVRs on all motor sport hobbiests/racing just to make sure the need for speed doesn't spill over to public roads.

Should he end up a claim due to extreme poor decision making skills, that's not an exclusion in any policy. That happens all day every day, we just try to catch it on the front end before we have to pay on it.

Although he races at the drag strip, he was talking about on public highways.

It would be a simplified issue ROP Term.
 
Although he races at the drag strip, he was talking about on public highways.

It would be a simplified issue ROP Term.

Many companies run a MVR on simplified issue. (Simplified does not mean "no underwriting") as well as a MIB report.(if he's applied elsewhere) As long as the MIB and MVR are clear, application questions clear, he'd probably sail straight through. If however the MVR has violations, his app would get pulled for additional scrutiny,

If however he is less than honest in regards to moving violations on the application nd there is a claim in the first 2 policy years, it's suddenly open to contestability. A headache a beneficiary wouldn't care for.
 
One thing to talk to your friend about when it comes to insurance purchases talking like you got a set of balls ONLY raises your rates.

Tough guy, bas as sery talk only serve to make the underwriter uptight. When it comes to insurance, you talk about how safe you are, not how stupid.

Had a VP of a company tell me during the application process, "yea, I climbed Mount Rainier last year." when the question came up, chest all puffed out, full macho going on....

In my mind "oh s hit, extra rating.." Tell me about your experience? "Well first we got in a snow cat and traveled up the ice field where we stopped and hiked about 100 yards to a champagne and Strawberries lunch all laid out for us. Then we hiked back to the snow cat."

I had to call the underwriter and explain this was the Eiger Sanction with Eastwood, but a ride up the mountain for a picnic. No extra rating.

Being bad a ss during the application process is being a dumba ss. Make sure your friend realizes this. cheers.
 
Actually suicide is covered 100% from day one of the issued policy, it's just a different death benefit amount that gets paid for two years (one year in MO)
I'm not sure I'm following. The DB on suicide during the suicide period is a refund of premiums - not even at interest - minus any loans. What companies do it differently?
 
Back
Top