Does Insurer Have Any Recourse After Issuing Policy Incorrectly?

[slacker]

Update:

After speaking with a half dozen reps, she finally received some quotes yesterday, The rep told her it would be for whole life, which she is entitled to according to company literature, but sent her 3 quotes for an IUL policy with no illustrations or explanations-very generic, requiring no signatures. At the top of the quote he listed her name, state, age, then "Female 5'10" 150 lbs". He then told her next step is just to complete the application that he would help her with. I was able to find their conversion app online and there are no medical questions, including ht/wt on it.
Moral dilemma for her at this point? He never asked her current ht/wt,just made something up. I know that if she proceeds with the app based upon this quote that there's a chance it could get flagged during the underwriting process, however cursory that might be, but is it up to her to correct information that they have on the original app? Lastly, and most importantly, if she does not correct him and dies in the next two years, would this be grounds for rescission, if they are even able to find the original generic quote?

 

[VolAgent]

Update:

After speaking with a half dozen reps, she finally received some quotes yesterday, The rep told her it would be for whole life, which she is entitled to according to company literature, but sent her 3 quotes for an IUL policy with no illustrations or explanations-very generic, requiring no signatures. At the top of the quote he listed her name, state, age, then "Female 5'10" 150 lbs". He then told her next step is just to complete the application that he would help her with. I was able to find their conversion app online and there are no medical questions, including ht/wt on it.
Moral dilemma for her at this point? He never asked her current ht/wt,just made something up. I know that if she proceeds with the app based upon this quote that there's a chance it could get flagged during the underwriting process, however cursory that might be, but is it up to her to correct information that they have on the original app? Lastly, and most importantly, if she does not correct him and dies in the next two years, would this be grounds for rescission, if they are even able to find the original generic quote?

What moral dilemma? If the conversion application does not ask height and weight, she did not lie. Also, her height and weight at time of application is what matters, not her current one for contesting the policy.

On a conversion, a company only gains a new window to contest as it relates to statements made by the applicant at the time of conversion. All previous statements do not matter as far as a new period of contestability.

 

[slacker]

What moral dilemma? If the conversion application does not ask height and weight, she did not lie. Also, her height and weight at time of application is what matters, not her current one for contesting the policy.

On a conversion, a company only gains a new window to contest as it relates to statements made by the applicant at the time of conversion. All previous statements do not matter as far as a new period of contestability.

No, she did not lie, but she is agreeing to the quote that shows her to be 5'10 150lbs, that's her quandary as she knows what the original app states

 

[pfg1]

Yeah, I'm not following either. Conversion isn't applying for coverage.

 

[VolAgent]

No, she did not lie, but she is agreeing to the quote that shows her to be 5'10 150lbs, that's her quandary as she knows what the original app states

Did she sign the quote? If not, she didn't agree to a thing it said.

All she is bound to is something she signed and if the conversion app doesn't ask her height and weight then it is irrelevant.

Here is the moral dilemma. You want to sell something, but it is hard to justify if she can convert. I understand, we get paid to sell. Again, get appointed if you can and do it for her.

 

[slacker]

Did she sign the quote? If not, she didn't agree to a thing it said.

All she is bound to is something she signed and if the conversion app doesn't ask her height and weight then it is irrelevant.

Here is the moral dilemma. You want to sell something, but it is hard to justify if she can convert. I understand, we get paid to sell. Again, get appointed if you can and do it for her

Believe it or not Vol, not true (I don't know how to highlight your last paragraph). The referring agent has given me quite a bit of business. I owe it to him and the client to do what is best for her. I will tell her to proceed with the process, after getting a whole life quote, and see how it turns out. And thanks for your input!

 

[VolAgent]

Believe it or not Vol, not true (I don't know how to highlight your last paragraph). The referring agent has given me quite a bit of business. I owe it to him and the client to do what is best for her. I will tell her to proceed with the process, after getting a whole life quote, and see how it turns out. And thanks for your input!

I'm glad to hear that. And I'm not trying to impugn your character, I'm simply being blunt about it. All the posts on her questioning it are coming from one of two things, lack of understanding about conversion, or wanting to justify a new policy. It appears you just may not be completely up to speed on how conversion works.

Conversion is definitely in her best interest. As long as she doesn't lie on the conversion application, she is golden. Now if it asks her height and weight, fill it out honestly and then see what happens. Which is why she shouldn't wait until the last minute.

They may only contest based upon statements she makes at the time of conversion. And by statements I mean something in writing that she signed.