Life Insurance Application - family medical history

scottishminnie

My husband recently applied for a decreasing term life assurance cover with Zurich. Part of the application was a section about his family medical history. He has very limited, and somewhat strained, contact with his parents and none at all with all but one of his siblings so in all honesty he simply does not know what medical conditions any of them may have had/been treated for either now or during the last 18 years.

I was completing the application for him so thought that telling the truth was the best option and marked on the table that he wasn't aware of any of the listed medical conditions however he cannot verify this. The wording was such that it didn't allow for "to the best on my knowledge" it was very black and white - "has any member of your family?....."

Today he received a call from an underwriter at Zurich who accused him of being deliberately obstructive and trying to commit fraud by non disclosure of vital information. The adviser went on to say that they would be escalating his application in order that it is recorded as a fraudulent application, ensuring visibility to any other companies which he may make applications to. They advised he will also have to state on future applications that he has been declined cover.

Apart from being absolutely furious that he has been accused of criminal activities he is now seriously concerned that this situation will make obtaining any life cover virtually impossible. We currently have life insurance however are in the process of buying a second property which we require to protect.

Does anyone have any insight which they can share here as I'm at a loss to know what else we could have done.

InsideInsurance

Did you actually state that the situation is unknown due to lack of family contact? Did you simply say "to the best of my knowledge"? Did you simply say none and relied on the fact the question asks explicitly "to the best of your knowledge"?

I was adopted from birth so have no knowledge about my "biological family". When I answer the question I do put there are none known however adopted from birth and no family contact.

OshayAway

It is indeed "to the best of your knowledge", so what proof do they have that you have withheld information?

kingstreet

Why is he applying to Zurich?

Surely there are better and cheaper options out there?

scottishminnie

InsideInsurance wrote: »

Did you actually state that the situation is unknown due to lack of family contact? Did you simply say "to the best of my knowledge"? Did you simply say none and relied on the fact the question asks explicitly "to the best of your knowledge"?

I was adopted from birth so have no knowledge about my "biological family". When I answer the question I do put there are none known however adopted from birth and no family contact.

Sorry, I should have made it clearer I wrote on the form something along the lines of "these responses are to the best of my knowledge however as I have no contact with my family I cannot be certain"

He does have very limited contact however it is somewhat difficult so rather than complicate things I felt it easier to say no contact,

The form asked simply yes or no - no option for "to the best of my knowledge" so I thought it best to be explicit.

I should add whilst I completed the form hubby checked it and signed it as he was happy with the content - before anyone has a go at me completing his application. His writing is like a hen scratching on paper so would not thrill anyone trying to decipher it.

InsideInsurance

scottishminnie wrote: »

Sorry, I should have made it clearer I wrote on the form something along the lines of "these responses are to the best of my knowledge however as I have no contact with my family I cannot be certain"

On the basis of the above I would write a formal letter of complaint to the insurer. From what you have said you have not been obstructive and clearly have stated that it is unknown and the reason why.

My guess is that it isnt a "proper" underwriter that you have spoken to and nothing will come of it but I would want in writing from them that they have no intention to put any fraud markers on any internal or external systems.

OshayAway

Totally agree about raising a formal complaint.

Also, don't be dismayed, not all insurers ask about declined cover elsewhere. A good broker will be able to advise you which.

scottishminnie

InsideInsurance wrote: »

On the basis of the above I would write a formal letter of complaint to the insurer. From what you have said you have not been obstructive and clearly have stated that it is unknown and the reason why.

My guess is that it isnt a "proper" underwriter that you have spoken to and nothing will come of it but I would want in writing from them that they have no intention to put any fraud markers on any internal or external systems.

OshayAway wrote: »

Totally agree about raising a formal complaint.

Also, don't be dismayed, not all insurers ask about declined cover elsewhere. A good broker will be able to advise you which.

Thanks, we certainly will be making a complaint. I can't believe this isn't something that crops up from time to time and I think the way it has been handled is apalling.

I'm also taking the view that until he has something formal to state they are refusing him cover that the answer to any questions around declined cover is still no.

Kingstreet - the quotes came via the broker who does OH's business policies and Zurich was equal cheapest - obviously miles ahead in terms of treating customers like dirt though!

roxy13

I am an actual underwriter although not for Zurich and i can not understand this! How ridiculous. If a client has no knowledge of their family history then we just accept this. Alot of people have no contact with family members or are adopted. I have no idea what Zurich are playing at but i think this was probably not an underwriter that delivered this information.
Go elsewhere and complain to Zurich. It is disgusting customer service to be honest.
Oh and if you do go elsewhere, just explain the situation to the new insurance company, it definitely does not go against you at all for life or critical illness purposes if you have been declined previously. An underwriter will ask the reason, you can tell them and they will accept that. They may obtain a report from your GP but they will not make an unfavourable decision just because another insurance company has. It has to be investigated further as any question answered 'yes' on the application form has to be.

OshayAway

Just to stress that not all insurers do ask about previous declined applications or special terms. Obviously, applying to one that doesn't will avoid you needing to provide further explanation on the subject.

scottishminnie

Bit of an update - spoke to the Broker today and he is not a happy bunny so this may result in more than one complaint. He's off to find an alternative provider - says he's never heard nonsense like it - well actually that wasn't exactly what he said:D