Denial of life insurance claims based on discrepancies with respect to social media profiles as well as digital footprints has become a new tool for denying life insurance claims.
Life insurance companies have relied on a comprehensive underwriting process to assess the risks associated with insuring a person. In the past this involved simply reviewing medical records, conducting health examinations, and asking applicants to disclose lifestyle factors such as smoking, drinking, or engaging in risky hobbies. But now, insurers have begun using advanced technologies such as AI (artificial intelligence) and data analytics, to analyze applicants' online activities. By searching social media profiles on Facebook, Instagram, TikTok as well as blog posts, e-commerce purchase histories, and even geotagged images, insurers can get a lot more info about a person’s lifestyle. The insurance companies can use this information to deny claims.
A good example is where an individual, during the life insurance application process, checks “No” to questions about engaging in hazardous activities such as skydiving or scuba diving. Later, the insurer uncovers Instagram posts showing the person doing these very activities. Such discoveries can lead insurers to claim material misrepresentation, as well claim any ‘dangerous activity’ exclusions resulting in denied life insurance claims or even policy cancellations.
Many people share their lives online without considering how this information could be used against them, especially with respect to a denied life insurance claim. While insurance companies may argue that publicly available data is fair game, insured people may feel blindsided if their online presence becomes the reason for a denied life insurance claim. Insurance companies require applicants to provide accurate and truthful information to the best of their knowledge. But the use of digital footprints blurs the lines between misrepresentation and honest oversight. For instance, failing to disclose a hobby that one has pursued sporadically, and perhaps even forgotten about, might not be a deliberate omission.
If you have a denied life insurance claim, the life insurance lawyers from LifeIinsuranceAttorney.com are here to help.