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Party A lies on his term life ins application re beiung a smoker. Blood lab results don't catch it. policy is approved.

Not just 2 but 10 years pass.

What are the risks at this point? As i understand it, past 2 yrs the policy cannot be canceled.

How about, if the life ins company finds out can they charge with fraud
anyway, to teach the guy a lesson, even if they have to pay on the policy?

Other risks?

Message 99% of us know, don't lie on ins apps.


TIA
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What are the risks at this point? As i understand it, past 2 yrs the policy cannot be canceled.

How about, if the life ins company finds out can they charge with fraud
anyway, to teach the guy a lesson, even if they have to pay on the policy?

Other risks


A policy can always be rescinded for material misrepresentation or fraud. If a claim ensues, it is more likely to be tried in court.

(On a, pretty irrelevant, side note, 2 of one of my auto insureds' brothers were once found stripping their sister's insured vehicle in a remote field. The insurer refused to drop the claim at the insured's request, paid the claim and prosecuted her brothers.)

The common 2-year contestable period in life insurance contracts most commonly applies to suicide, but can also be applied to age and sex misstatements.

Bob
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always can be "rescinded for material misrepresentation "
thankyou,
is the guilty party at risk of criminal charges as well?

TIA
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is the guilty party at risk of criminal charges as well?

I would be somewhat surprised if they pursued criminal charges, but I would suggest that he contact a criminal attorney, to get a 2nd opinion from a professional in that field. Having known a very qualified one, by way of opening an office next to his, being married to one of his secretaries for a couple of years and going to one of their office Christmas parties, the most lavish and expensive I have ever attended I might add, those guys always enjoy a good laugh... like, how stupid can one be - Did your mother play basketball with your head?

Their work tends to get a lot more dismal at times. I once referred a rural mail carrier I insured to the above attorney. The insured had hit and killed a 17 year old rural newspaper delivery buy on a bicycle after some drinks after work before driving home, and then fled the scene of the incident at his intoxicated passenger's advice. The attorney got him off with 5 years probation and only charged him a $10,000 attorney's fee.
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The attorney got him off with 5 years probation and only charged him a $10,000 attorney's fee.

I hope there was a civil suit because this is just wrong, IMHO
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I hope there was a civil suit because this is just wrong, IMHO

Yes, it certainly wasn't an enjoyable experience as an agent.
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Thinking back on it, a number of my insureds have killed people in auto accidents. Alcohol and/or drugs were often involved.

I almost killed 2 13 year old girls. Alcohol and drugs weren't involved. I was driving home from work one Saturday afternoon to the right and slightly behind a panel van driving in the the lane to my left on a 4-lane highway. The van driver suddenly applied his brakes. As my car drove forward at around 38 MPH in the 45 MPH speed zone, I saw the 2 girls heads as they emerged from just a couple of feet in front of the van. I slammed on my brakes, the front of the car squatted down and I carried the girls on the front of my car for maybe about 60 or so feet.

When the car came to a stop, the girls fell to the pavement with cracked skulls, concussions, bleeding from their mouths and noses, internal bleeding and one had a cracked pelvis. I ran to a payphone where a bunch of girls were talking on the phone. (I later learned they had yelled to the 2 girls I hit, "Come on! Come on!" I grabbed the phone from the hand of the girl holding it, hung it up and called 911, almost unable to speak coherently. I stood nearby as paramedics worked on the girls, strapping them to wooden boards. The father of one of the girls arrived and, after looking at his daughter, screamed "Who hit them!" I replied, "I did." He asked me in a stressful voice, "Wasn't there anything you could do?" I replied, "No." The local police department's shift commander told me that 10 witnesses had stopped and stayed and all had stated that there was nothing I could have done. He told me he didn't think any charges would be pressed, but he had to cross that with the district attorney first. He later called me at home and told me that he had gone to the hospital that the girls were taken to, told me of their serious injuries, but it looked like they would live. I still didn't sleep very well for the next several nights.

The parents filed a law suit against me, and their daughters had 2 years after they turned 18 to also do so. My auto insurer settled the parents' claims and the girls didn't file after they reached legal capacity to sue, at the age of 18.

I sincerely hope this never happens to you (or me, again).

Bob
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