FE Question: When the Client LIES on the PHI

[jacobtn]

So I had it happen again today. Sold someone Foresters, we were replacing a graded policy with level coverage. Chewed tobacco but didn't use any other tobacco. He had some health issues so Foresters was still the best fit. At the beginning of the apptical interview, he says "No" to the tobacco question after a lengthy explanation of how he quit smoking 15 yrs ago. I interrupted and had him change his answer due to the fact he was chewing tobacco.

What do you guys do on these? I know I did the right thing but was curious if this had happened to anyone else. I can't let that happen if I'm aware of it, too risky and as we all know the agent is the first one to get the hammer dropped on them. In TN we have the contestable rule (2 yrs) even if replacing, so I didn't want to subject him to a contested claim.

 

[STIBROKER]

what do we do......we get paid more because they use tobacco....yea

 

[Mark]

It is very important for them and you to always be honest with the insurance company.

 

[VolAgent]

I believe there was an earlier thread about this, where the agent knew the insured used tobacco but marked no on the application. There was more to it, but the agent lost in court. Went all the way to the Tennessee Supreme Court.

So yes, you did the right thing.

 

[LGilmore]

No one out there is worth your license. Sometimes that means you leave short term money on the table. A customer will lie throught their teeth if caught 9 out of 10 times. You did the right thing.

 

[briko3]

No one out there is worth your license. Sometimes that means you leave short term money on the table. A customer will lie throught their teeth if caught 9 out of 10 times. You did the right thing.

That's a good point. If they'll lie to save a few bucks, imagine what they would say to get a whole death benefit later on.

 

[VolAgent]

That's a good point. If they'll lie to save a few bucks, imagine what they would say to get a whole death benefit later on.

Not sure how things work over in South Carolina, but here its pretty hard to collect your own death benefit. Insurance companies tend to frown upon it.

 

[b61mack]

i heard in chicago, not only, can collect on your own death benefit, you can also still vote, (democrat only),

 

[briko3]

Haha...don't know what I was thinking, but it brings up another point.

 

[Briefcaseboy]

Years ago a lady called me about health insurance. I asked her about her current health. She said, " Well, the doctor examined my heart and said there might be a little tick or something." I asked her if he knew for sure that there was a tick or something in her heart. She said, " No, he didn't know for sure." Well, all I was thinking about was getting a commission. I wrote up the app and sent it in to the company. A couple of days later a friend called me and said," Catch that app ! , she just went in for heart surgery...my heart jumped up in my throat, I jumped on the phone and told them to cancel the app. That taught me a very valuable lesson......ALWAYS be up front and honest on the app.