The practice of life insurance companies reviewing an insured’s medical history following their death is a standard procedure employed to validate the information provided during the application process. This review aims to ascertain the accuracy and completeness of the applicant’s disclosures regarding pre-existing conditions, treatments, and lifestyle factors. An inconsistency found can affect the validity of the policy’s coverage.
This review serves several crucial functions within the life insurance industry. It protects the insurer from fraudulent claims based on withheld or misrepresented information. It also contributes to the overall fairness and stability of the insurance market, ensuring that premiums are appropriately calculated based on accurate risk assessments. Historically, this practice has evolved alongside advancements in medical record keeping and data analysis techniques, becoming more sophisticated and thorough over time. The rise in digital health records has facilitated quicker access to comprehensive information.
