Fool me once!!!

For those wanting to purchase accidental death policies through Hinerman Group life insurance and Risk Life, well, it just got a little tougher thanks to a client who lied to me about her and her husband’s scuba diving activities. I got a call in March from a lady on St Croix asking about scuba diving accidental death coverage. After going through all of the usual questions about certifications, how often, how deep, any dangerous activities such as wreck diving I was convinced that they were truly recreational divers. I procured offers and eventually policies for them through Lloyds of London and they went in force in late March.

With traditional life insurance I could have quoted this coverage based on what the client said, but when it came to applying they would have to complete and sign a scuba questionnaire, putting their scuba story in print to become part of the policy. That is sometimes required by Lloyds prior to quoting, but in this case wasn’t, probably because it presented itself as a pretty normal recreational situation. They weren’t asking for a lot of coverage, $500,000, so no real red flags. Lesson learned. If I had asked for questionnaires, more than likely they would have ended the inquiry knowing that if they put the real story in writing the policy on him would have cost profoundly more than the $600 he paid. The truth was that he was an extreme diver who, just a few weeks after the policy went in force set a personal scuba diving record of just over 800′. 4 months later he died trying to break the world scuba depth record by going to 1200′.

If his wife had lied on the questionnaire the company would have been able to deny the claim completely because of fraud. If she had filled it out honestly coverage he could have still been issued a policy at a much higher rate. So, lesson learned on this end, no one will apply for any kind of AD coverage through our offices ever again without completing and signing an appropriate questionnaire. It may slow things down by a few hours in the quoting and application process, but never again will anyone pull one over on me and for those that have policies in force, on renewal you will also be completing questionnaires for renewal quotes.

It sucks to be lied to, but it sucks even more than due to my naive nature, Lloyds may end up paying the liar a large settlement.


About the Author

Every year millions are needlessly declined for life insurance or approved and paying far more than they need to. For 14 years, I have specialized in turning those situations around and finding the right life insurance solution at affordable rates. I give every client the personal attention they deserve.

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