What To Do When The Client Says, 'But I've Only Done Drugs Once!'

The producer provided a strong cover letter about his long and professional association with the proposed insured. He attested to his customers normally high moral standards and positive involvement in the community. He also stated that he has no reason to believe his client is a drug abuser.

The client wrote a one-page letter to the underwriter “coming clean” and discussing his one-time use and his regret and embarrassment over the whole affair.

The insurance company offered to review the evidence if the client did a hair follicle test at his own expense (approximately $300). Note: Some studies suggest that hair follicle testing can indicate chronic drug use.

The underwriter also requested new labs with a complete drug screen.

The underwriter requested a special inspection report, presumably checking with more than the usual number of sources in regard to “lifestyle issues.”

The client agreed to all of the above. He did the hair follicle test and provided a new urine specimen. Both were found to be clean, and coverage was ultimately offered at standard rates.

You, too, may be in a position to save such tough cases. Before you invest any additional time, however, first determine if it is indeed likely that your client engaged in drug use “only once.” Ask some most pertinent questions, such as those in the chart, and provide the details to your most experienced underwriter for assessment.

With an honest client who indeed did drugs “just this once,” it should be possible for you to negotiate for life coverage somewhere–and get paid in time to spend the New Year at Times Square!

manages the Los Angeles, Calif., office of BISYS; this office assists with advanced sales solutions, jumbo case underwriting and impaired risk negotiations. You can e-mail him at [email protected].

Key Questions Needed To Determine Insurability

• Date of last drug use?
• Specific drug used?
• Frequency of use in past?
• Treatment completed (details)?
• Current attendance at Alcoholics Anonymous or similar?
• Is client willing to “come clean”?

Reproduced from National Underwriter Life & Health/Financial Services Edition, November 18, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.