Giving False Information on Insurance Applications

If you’re tempted to tell a little lie, or make an omission on an application for your insurance -don’t do it.

Insurers can get lots of outside information to verify the facts you’ve given. If they discover you haven’t told the truth, they’ll often reject your application - even if you would have otherwise qualified. "They wonder what else you’re lying about" says Byron Udell, president of an insurance quote service.

Life and disability insurers look at your medical records. Most also have instant access to your records with the Medical Information Bureau. Life insurance companies conduct investigations if you die within 2 years of taking out a policy and will deny the claim if they discover you’ve lied. Auto insurers can cancel your coverage and charge you with fraud if they discover you’ve lied on your application.

Resource:  Kiplinger’s Personal Finance Magazine,  Feb. 99,  Pg 106

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