Insurance companies are in the business of minimizing payouts. One of the ways they achieve this is by scrutinizing claimants' social media accounts to find information that could discredit their injury claims. They may look for posts, photos, or even comments that suggest you are not as injured as you claim to be.
Lenders can use information from your social media and other online accounts as a factor in assessing your identity, your trustworthiness, and your borrowing risk level.
Underwriters analyze the risk factors appearing on an application. For example, if an applicant reports a previous bankruptcy, the underwriter must determine whether that information is relevant to the policy being applied for.
Insurers research a personal injury claimant's Facebook page or other accounts in order to justify the denial or reduction of financial compensation—sometimes even when a claim is legitimate.
The key is to protect your online data from insurance companies. Did you know that data miners provide insurance companies with all manner of personal data about you? This information includes your shopping, browsing, and messaging habits, along with a comprehensive history of status updates, tweets, and the like.
Social media provides customers with greater access to service providers, insurance companies, retailers, and any entity with an online presence. Accessibility is no longer a one-on-one phone call, but a public form of communication where a customer's review or complaint can make or break reputations.
Underwriters can't approve a loan application with missing or unverifiable information. Although this might seem obvious, it was one of the top reasons for loan denial in 2020. You can't prove your income or employment history is stable. Most loan programs require a two-year history of steady earnings and employment.
Unexplained Payments To Individuals and Companies
Payments or regular withdrawals that don't match up to any debt on the credit report may indicate you have undisclosed debt. The underwriter must add all debt payments to your debt-to-income. Expect to explain regular withdrawals that appear to be payments.
Underwriting can take as little as 24 hours but could last 4 to 6 weeks. The more extensive the policy, generally the more detailed and time-consuming the process. During that time, the underwriter will review the details of your application and the results of your health exam.
Here are the results of several studies: 43% of companies review the social networks of candidates who have responded to vacancies; 70% of companies use social media screening when hiring. And 57% don't hire candidates because of what they found in their profiles.
Social media can lead to debt problems if you're charging more than you can pay off on your credit cards or taking out loans to finance a lifestyle that you can't realistically afford. You might get into a situation where you can't afford to pay your bills.
Overall, they're looking to see how healthy your finances are. To do this, they look at all of your financial accounts, balance information, account holders, interest information, and account transfers.
An insurer has the right to ask for a social security number where the information is reasonably related to underwriting. One such purpose is to obtain a credit report of an insured.
There are no federal laws that prohibit an employer from monitoring employees on social media. Employer surveillance of social media is intersecting with the privacy rights of employees and if, as a result of surveillance, the employee is terminated, the action may or may not result in a wrongful termination suit.
Many aren't aware that some insurance policies include clauses that could void coverage if you're found to have been reckless with your home's security. Publicly posting your location or evidence that you're hundreds of miles away could be considered a breach of these terms.
When trying to determine whether you have the means to pay off the loan, the underwriter will review your employment, income, debt and assets. They'll look at your savings, checking, 401k and IRA accounts, tax returns and other records of income, as well as your debt-to-income ratio.
Spending habits
And they will look to see if you are regularly spending less than you earn consistent with the savings you are claiming. No matter how frugal you might be most lenders have adopted a floor on the living expenses they will accept.
There's no reason for a borrower to worry or stress during the underwriting process if they get prequalified. They should keep in contact with their lender and try not to make any major changes that could have a negative impact on this critical process. That includes taking out new debt or making a big purchase.
You may be wondering how often underwriters denies loans? According to the mortgage data firm HSH.com, about 8% of mortgage applications are denied, though denial rates vary by location and loan type. For example, FHA loans have different requirements that may make getting the loan easier than other loan types.
If you apply for a pre-approved offer you'll usually be successful, but it's not guaranteed as the lender always has the final say. There are a few different reasons why your pre-approved offer may be rejected: Delay completing your application (as your circumstances may have changed in the meantime)
Yes, depending on your security setup, some entities can potentially see your search and browsing history: your internet service provider, hackers, government agencies, search engines, and some others.
Your credit-based insurance score is not the same as your regular credit score. According to FICO, a data and analytics company that measures credit risks, many insurers use credit-based insurance scores in states where it is legally allowed. Know how an insurance company uses your credit-based insurance score.