Informal inquiries help clients avoid pitfalls that can accompany them and their quest for coverage for the next 7 years. Simply put, an informal application is a packaged up case where essentially all the information needed for the underwriting process,  including all age and amount requirements, are submitted to the carrier for review EXCEPT for a signed application. The purpose is simple. Generally speaking, most informal applications are submitted because there are insurability concerns from a either a medical, non-medical or financial perspective or due to a combination of any one of these. A signed application authorizes the carrier to run the applicant through the MIB system which will more than likely result in impairment codes which will follow the client for the next 7 years. In the very least, it will result in an IAI flag which is the acronym for Insurance Activity Index which will notify all carriers in both Canada and the United States that there has been an application for insurance submitted to a carrier on a particular date. Presenting an informal application to a carrier will avoid that information to be transmitted through the MIB coding system. A signed application also authorizes the carrier to obtain or share information with a 3rd party. Without a signed application, the carrier is not allowed to run the client through the MIB database and not allowed to share this information with anyone.

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