With advancing
technology and evolving underwriting tools, it may be easy to overlook what has
now become an “old standard”, the World Wide Web. Underwriters routinely use
numerous screening tools to help assess whether applicants meet the requirements
for life insurance: from lab results and motor vehicle reports, to attending
physician statements and prescription database checks. But still I wonder how
many underwriters conduct a simple web search on their applicants? A quick and
simple search could sometimes uncover some significant information.
The World Wide Web
provides us access to millions of public webpages that contain a vast amount of
information. Of course, it’s important to realize that since there is no
regulating body monitoring the reliability and accuracy of the information
found, it can’t solely be used as the basis for making an underwriting
decision. Carriers should consult with their compliance officer on the
appropriate utilization of Internet-developed material when reviewing an
application. Nevertheless, what you might find could alert an underwriter to
pursue an additional investigation.
Consider the following
case involving a seemingly healthy middle-aged man applying for the maximum
Non-Medical amount of coverage. A “friend,” who resides in a different state
than the proposed insured, is listed as the owner and beneficiary on the
application. An inquiry to the agent about the insurable interest results in an
ambiguous answer and leaves some uncertainty regarding how to proceed. A web
search of the proposed insured then revealed that he was imprisoned and awaiting
execution!
Take another case of a
young self-employed male who was opening a hydroponics business (method of
growing plants) and applying for coverage. The cover letter provided by the
agent described a previous possession of marijuana charge that resulted in
probation that was already completed. However, a web search revealed a far more
serious charge of an arrest for a large-scale marijuana-growing operation with
possession and the intent to deliver.
If application
information provided to an underwriter through traditional underwriting
requirements appears inadequate, as happened in these examples above, a web
search may help to round out the information and point the underwriter in the
right direction. The World Wide Web is right at our fingertips and can provide
details ranging from home values and business operations to criminal history.
There are a variety of reasons an underwriter may want to search the web -
consider these other few instances:
·
A proposed insured
competes in motor vehicle racing or another avocation. A search may provide
additional details regarding his or her participation level.
·
The occupation provided
is “business owner.” A search may discover a business website with valuable business
details.
·
The value of a property
listed as an asset is unclear. A search may help provide an estimate of what
the property is worth.
·
A proposed insured has a
high-risk profile or there is a suspicion of criminal history. A search may
provide past or current criminal charges.
The World Wide Web is a quick and simple tool that can be very useful at times and may become an increasingly valuable asset to underwriters in years to come.
No comments:
Post a Comment