That's true, but the problem of long context understanding (say, "summarize each of the situations where the word 'wizard' is mentioned") remains. And that gets much closer to the insurance policy thing.
But at the end of the day an LLM is right 80% of the time while being 100% confident 100% of the time that it gets the right answer. You can increase that 80% but I don’t see how the current breed of LLMs can learn to self doubt enough to keep trying to understand better.