In recent years, the life insurance industry has greatly enhanced the speed and efficiency of its underwriting decisions. This change in the underwriting process is due in large part to the use of new technology in data collection and risk assessment. As the utilization of such technology expands, the changes within the industry will accelerate at an even faster rate—potentially before the industry is able to determine whether their changes are ultimately beneficial. Accordingly, the insurance industry should analyze the potential benefits and drawbacks on new technology used to increase underwriting efficiency while adaptive measures are still possible. This analysis should consider both the immediate practical concerns of implementing this technology and the larger impact such technology will have on the industry at large.

This paper highlights the recent technological changes within the life insurance landscape, and the legal issues implicated by its utilization, including rescission. It is not intended to be an exhaustive discussion of rescission or any legal issue but rather, illustrative of those implicated by the technology changes and trends. The issues are being litigated now and the litigation will undoubtedly escalate.