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The idiocy of this isn't relevant. The relevance is that it gives an insurer an opportunity to put out a soundbite that sticks.

Most folks won't look to deeply at this, they'll just lick stolen personal data with claims and there is another nail in the coffin.

Amusingly I had a new client whinging about claims until I pointedly said the reason he was in front of me was because he wanted to make a claim.