The Life Insurance Application Process – New York

Applying for life insurance may sound like a relatively simple process, but it can be fraught with complications and misunderstandings that later result in a dispute with the life insurance company.

Typically, the application process can be divided into two parts: (1) a written application containing numerous questions about the applicant, and (2) a medical examination. Some life insurance companies conduct minimal underwriting by using a simple application and foregoing a medical exam.

Often, an insurance broker or agent is involved in completing the application. Some brokers and agents (a broker works for an independent insurance agency while an agent works directly for the insurance company) hand over the application to the applicant to complete. Others ask the questions aloud and fill in the answers, and this is the method that is most susceptible to incorrect or inaccurate answers.

Role of the broker or agent: it is important to understand, when applying for life insurance, that although the insurance broker or agent may seem like he or she is on your side–after all, she has won your business and advised you on the type of product most suitable to you–New York law for insurance brokers and agents often makes the consequences of any misrepresentation in the policy application fall on the policyholder. There are exceptions to this rule, however, which is why it is critical to consult with a New York life insurance attorney for a claim denial.

Remember, insurance brokers and agents are rewarded for selling policies and not for their thoroughness in completing policy applications. An incentive exists for them to sell as many policies as possible, creating the tendency for shoddy application methods and procedures. Brokers and agents are not financially rewarded for carefulness in guiding their customers through the application process.

The Application: the written application typically contains numerous questions that cover subjects such as medical history, income, and recreational activities. The questions can be confusing, with a single question covering a number of different topics or a broad time period. It can also be difficult for an applicant to remember his or her complete medical history as well as other information from many years ago. After all, we tend to forget about conditions that may have resolved and never caused us any problem.

However, it is extremely important to read the questions carefully and disclose all of the information requested. Otherwise, the failure to do so could later lead to a rescission of the policy.

When medical exams are performed, most often it is by a nurse or paramedic who takes a blood and urine sample and also asks various medical questions.

Before signing an application, it is extremely important to carefully review it for accuracy. Do not trust the agent or examiner to fill it out correctly or tell you that it is not important to disclose certain facts. Otherwise, a careless mistake could become a costly one for your loved ones.

You can contact New York Life Insurance Denial Lawyer Eric Dinnocenzo at (212) 933-1675 for a free consultation.