The Latest Updates on the Health IQ Lawsuit: What You Need to Know
If you’re in the insurance industry, you’re likely already familiar with Health IQ, a life insurance provider. Health IQ sells policies specifically to individuals who maintain a healthy lifestyle and have achieved a high score on their proprietary Health IQ Quiz. Unfortunately, Health IQ has found themselves in the middle of a lawsuit. Here’s what you need to know about the latest updates on the Health IQ lawsuit.
Background on the Lawsuit
The lawsuit against Health IQ is based on allegations of misleading advertising. In 2018, the company began marketing itself as a “cheaper, smarter” alternative to traditional life insurance providers. Health IQ claimed to offer lower rates for individuals who maintain a healthy lifestyle, and touted their “unique underwriting process” which included their proprietary Health IQ Quiz.
The lawsuit alleges that Health IQ misled consumers by stating that their underwriting process would result in lower premiums for healthier applicants. According to the lawsuit, however, Health IQ’s underwriting process amounted to simply checking off boxes for various healthy habits, such as exercising regularly or eating a balanced diet. Plaintiffs in the lawsuit say that they were denied the lower premiums they were promised despite meeting all the healthy lifestyle criteria.
Update on the Lawsuit
In December 2020, Health IQ lost a crucial ruling in the lawsuit. A federal judge in California allowed the case to proceed as a class action suit, meaning that other consumers who believe they were misled by Health IQ’s advertising can join the lawsuit. This ruling creates much larger exposure for Health IQ since it opens them up to potentially thousands of claims.
Since the ruling, Health IQ and the plaintiffs have been engaging in pre-trial discovery, where each side is allowed to request information from the other in order to build their case. It’s still unclear when the trial will start, but it’s likely to take place later in 2021 or early 2022.
What to Expect Moving Forward
In light of the lawsuit, Health IQ has made changes to their advertising and marketing practices. Health IQ no longer advertises itself as a cheaper alternative to traditional life insurance and no longer claims that their underwriting process will guarantee lower premiums. The company now focuses on its unique underwriting process that may result in lower premiums for individuals who maintain a healthy lifestyle, but without any guarantees.
Despite these changes, the lawsuit against Health IQ is still ongoing. If you’re a life insurance agent affiliated with Health IQ, it’s important to keep an eye on the lawsuit and to update your communication with clients accordingly. It’s possible that uninsured clients could seek your advice on whether they should join the class-action lawsuit against Health IQ, which could be a difficult decision with many unknowns.
Key Takeaways
The Health IQ lawsuit is ongoing and has been allowed to proceed as a class action suit. Health IQ has made changes to their marketing and advertising practices, but it’s still unclear how the lawsuit will affect the company’s future. If you’re a life insurance agent affiliated with Health IQ, be sure to stay up-to-date on the latest developments so that you can communicate effectively with your clients.
