What can happen if I Omitted Information on my Insurance Application
May 16th, 2009
Health insurance companies cannot discriminate against you for your medical conditions. They cannot discriminate against you for racial, gender, or for reasons of your age. Most states don’t allow insurance providers to cancel your health insurance for the self-employed for any medical conditions that you may develop after your policy is in force. For example, if you were to be diagnosed with some form of dementia, such as Alzheimer’s disease, or if you were to contract the HIV virus, your health insurance policy could not be canceled. However, providers can cancel any insurance plan, including health insurance for the self-employed for reasons of nondisclosure of pertinent information to your state of health.
Omissions or misinformation would be considered deception, and the health insurance company is within their legal rights to cancel your policy. You must answer the questions on the insurance application truthfully, even if you fear you might be turned down. Underwriters are very cautious about writing health insurance policies to people with uninsurable conditions, so if you are caught in an omission or misrepresentation of your history, the policy may be canceled as soon as the truth about your condition comes to light.
There is an insurance database called the Medical Information Bureau (MIB) that stores pertinent information about you. Health insurance companies can rescind or cancel your policy if/when an omission or misrepresentation has occurred. Your policy can be canceled even if you have faithfully keep up and paid you personal or self-employed health insurance premium on time.
Many health insurance providers ask you to have a physical examination, which includes blood tests and urinalysis before they write a policy for you. The medical report will have the results of any lab tests to rule out any conditions that might disqualify you for personal or self-employed health insurance. This confidential information is put in a type of secret medical coding and stored in the database.
In summary, the MIB does not retrieve any information about you from any other source, and it is not concerned with your status of being insurable or uninsurable. Therefore, the MIB is not concerned if you were accepted or turned down for health insurance. The Medical Information Bureau is also not concerned with the type of insurance you applied for. You could have applied for self-employed health insurance, or a personal policy; the MIB does not keep those kinds of records. The MIB is not concerned with how you pay your premiums, or how much you pay. Actually, the Medical Information Bureau has limited information about you. The information that the MIB does have on you is cross-referenced with information collected about you from all types of insurance applications you have filled out. The MIB simply provides the medical information stored in their database about you and insurance company evaluates this information to decide if you are insurable or not.
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