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Alan met with Donna, a new prospect for disability insurance. Donna did not always seem to grasp the importance of the issues raised in completing
Alan met with Donna, a new prospect for disability insurance. Donna did not always seem to grasp the importance of the issues raised in completing the non-medical form on the application. When asked if she was a smoker, she answered "no" but did acknowledge that she usually borrows a cigarette or two when she parties, which usually happens about once a month. She felt that the th month period of disability she incurred a year ago would not be of concern because it was the result of a cycling accident, not a health factor. Although 30 pounds overweight, Donna stated that she is in excellent health and expected that she would easily qualify for coverage, probably at preferred rates. Not wishing to derail the sale, Alan did little to contest Donna's statement, and just recorded her answers on the application. When it came time for Alan to deliver the contract, Donna was unhappy with the revised premium and the restrictions placed on her coverage. She refused delivery, cancel the policy.
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