AIG Theft and Loss

Last known location is only available for 24 hours. So if a thief erased a device more than 24 hours ago, there will be no way to know if find my was enabled at the time of theft or not.

For AIG or any other insurance to claim that they can no longer ping or see a last location shown is not evidence Find My was not enabled when the device was stolen. That’s the very issue. If someone did indeed enable find my on their device before it was lost or stolen, and it has been more than 24 hours, the insurance company, nor anyone, has any means of knowing whether it was, or was not enabled prior to the device disappearing.

We’ve seen posts like this many times since AppleCare+ with loss and theft was first offered. I am not at all convinced that the insurance claims agents have any clue how Find My works. They have no means of independently verifying it was or was not enabled before lost or theft of the device has been erased a day or more ago.

Showing a screen shot or something that the device is still activation locked - I.e. tied to and listed under the owners AppleID as a trusted device is the best evidence they did indeed secure their device prior to loss. Simply not being found in Find My, or no last location found, is not evidence they did not enable that feature prior to loss.

That is the issue with these insurers who insure any and all smart phones, but whose adjusters and online support people seem to not understand the specifics of the remote tracking versus anti theft tech different smart phone manufacturers provide.

All any thief has to do to disable remote tracking with Find My is erase it by restoring it as new in iTunes or finder.

I would hope AIG would know that. Anyone can always just plug an iPhone or iPad into a windows or Mac computer and restore as new or force recovery mode and restore as new. The device will then no longer be remote trackable with Find My as erasing it erases the iCloud account and breaks the link with the iCloud Find My service. Doing that does not requiring knowing anything about anyone’s AppleID password.

As long as the device remains listed under trusted devices (check at https://appleid.apple.com/) then activation lock remains in effect on it. Activation lock cannot be disabled without knowing the owners AppleID password and being able to get a code if 2FA is enabled on the AppleID.

It's unlikely anything can be done.

The device needed to be marked as lost using FindMy. (https://support.apple.com/iphone/theft-loss-claims). To remove it would require the thief knowing the passcode to the device and iCloud password.

• Theft and loss coverage requires you to have Find My iPhone enabled on your device at the time it is lost or stolen. Find My iPhone should remain enabled and your iPhone should remain associated with your Apple ID throughout the theft or loss claim process. During the theft or loss claims process, you will be asked to erase your missing device, disable it, and transfer ownership before you can be issued a new device. 
• To ensure that you can sign in and access Find My iPhone, it’s important to remember your Apple ID and password and keep your account information up to date. If you use two-factor authentication for Apple ID, it’s recommended that you add an additional trusted phone number to your account so that you can receive the six-digit verification code required to sign in even if your iPhone is missing. 
• After initiating your theft or loss claim with Apple, you will be asked to finalize your claim on AIG’s website at www.aigtheftandloss.com.

Terms, conditions, and details by state are at https://www.apple.com/support/products/iphone/

A lot depends on whether Apple can or does provide AIG with time of last location report and how many consecutive location reports received before they stopped.

Otherwise I agree, though the need to have Find My enabled at time of loss is made pretty obvious:

Theft and loss coverage requires you to have Find My iPhone enabled on your device at the time it is lost or stolen. Find My iPhone should remain enabled and your iPhone should remain associated with your Apple ID throughout the theft or loss claim process. During the theft or loss claims process, you will be asked to erase your missing device, disable it, and transfer ownership before you can be issued a new device.

AppleCare Products - iPhone - Apple

I'm sure they do.

The issue is at least through the erase there will be a last known location from Find My.

The key is it needs to be enabled at the time of loss/theft.