Have you ever had a Medigap carrier rescind a policy? One agent claims to have been involved in 3 rescission's. One personal, two more via sub-agents.
I haven't been involved in the Medicare business that long but have over 40 years experience with underwritten health insurance policies. To the best of my knowledge during all that time and literally thousands of applications, only one rescission. In that case the applicant lied to me and on the app. Policy was justifiably rescinded just a few months after it was issued.
How do you handle underwritten applications? Do you go over the health questions and collect Rx info? Do you check the medical conditions and Rx against the carrier underwriting guide? Do you tell your client to be completely honest on the app and in the underwriting interview?
I do all of those. Every time.
The one rescission was a major medical policy about 10 years ago. In all the years of writing underwritten business, major med and Medigap, I can probably count on both hands the number of applicants who have been denied a policy.
Carriers have to meet specific standards before rescinding a policy. They must have concrete evidence of fraud or misrepresentation. Unless Medigap is different, the carrier has 2 years from the effective date of the policy to complete their investigation and pull the plug.
I would really like to see feedback on this.
I haven't been involved in the Medicare business that long but have over 40 years experience with underwritten health insurance policies. To the best of my knowledge during all that time and literally thousands of applications, only one rescission. In that case the applicant lied to me and on the app. Policy was justifiably rescinded just a few months after it was issued.
How do you handle underwritten applications? Do you go over the health questions and collect Rx info? Do you check the medical conditions and Rx against the carrier underwriting guide? Do you tell your client to be completely honest on the app and in the underwriting interview?
I do all of those. Every time.
The one rescission was a major medical policy about 10 years ago. In all the years of writing underwritten business, major med and Medigap, I can probably count on both hands the number of applicants who have been denied a policy.
Carriers have to meet specific standards before rescinding a policy. They must have concrete evidence of fraud or misrepresentation. Unless Medigap is different, the carrier has 2 years from the effective date of the policy to complete their investigation and pull the plug.
I would really like to see feedback on this.
