When you are buying an insurance policy, you get to hear the word ‘Underwriter’. Underwriter is an insurance person who does underwriting. Many a times an insurer who owns a policy from any insurance company will not be aware that at some point their application passed through an underwriter’s hand. Insurance company is run at high risk. It protects individuals from financial loss occurring due to car accidents, home burglary, property damage, illness and others. Getting involved in such big business, underwriting is one of the most important aspect of insurance process. So, it is necessary to know what an underwriter does and why is it salient, before you shop for an insurance policy.
Underwriting is a process to ensure that the insurance companies charge the right amount of insurance coverage. An underwriter decides if insurance is to be provided, if so, then under what terms. It happens pretty much behind the scene in the company, they are also involved in choosing who the insurance company will not insure. They are employed by the insurance companies. If the company charges too little for the coverage, they will run out of money to pay for the claims but if they charge too much, they will loose customers to competitors. Here an underwriter will provide a helping hand to insurance companies in order to decide accurate prices. He has a vital role in detecting and preventing fraud. They use sophisticated computer software and actual data provided by the customers to evaluate the risk involved, a likelihood and magnitude of payout in insuring a customer over the life of policy.
As underwriting plays a major role in obtaining an insurance policy to protect you and your needs, you need to understand how to handle underwriting process when applying for an insurance policy. Do not lie or provide any wrong information on an insurance application. Carefully think before you provide any details and supply the required information to the company’s underwriting department else it can lead you to be prosecuted for fraud. Once the form is submitted, an underwriter will contact you to clarify or if in need of more information, respond to them for fast process of your application. Finally, an underwriter will evaluate your risk and will place you on one of the different risk zones. Based on which your premium will be determined. Please note that your insurance policy can be declined based on underwriter’s risk evaluation.
If you find any person claiming more than what he is entitled to from his car insurance company then he is bound to be committing a fraud with his car insurance. You not only end up paying high premiums but also a costly claim. Do remember, as with car accident you will be playing with your family’s lives. It is very important to learn and know more about fraud protection, to avoid being the victim of fraud scam.
With high end technology, detecting an auto insurance fraud is not an easy task. Let this not bog you down to be a victim. Whether the fraud is being committed by an individual or the insurance company or any crime ring, there are certain steps need to be taken in order to avoid scam and be aware of it.
There are different types of scams. A resolute vehicle neatly framed can stop in front of you causing a collision n demanding a claim. Some drivers may pretend to be good and helpful but might cause an accident and make it look as your fault. In order to avoid being a victim of car insurance fraud, educate yourself and avoid a scam. Below are list of scams:
Back-End Car Accidents: Drivers involved in scam will quickly apply brakes in front of your car and thus making you to collide your vehicle against the other car. An innocent driver has to bare the expenses as they demand money by faking injuries.
Additional damage: Immediately after the accident occurs, the scam driver may act innocent but later damage his vehicle more and ask for more while filing for claim.
Promote for Fake: Be aware of fake people around you. There might be helpers when accident occurs and guide you to fake doctors, lawyers or repair shops. An innocent driver may be pulled into the traffic and create a menace by scam drivers. They would not let waving off claims in order to obtain that benefit from car insurance frauds.
If you are found to have a suspicious claim, then watch out for a burning hole your pocket as you will have to pay high car insurance premiums. The rates are growing drastically. Many car insurance companies are being notified upon the fraud occurring in the state. People blame it on financial crisis. They believe this is an easy way to beat the crisis. Be it Ohioan or any citizen of U.S, being deprived of such necessities and feels bounded by the economy. The recession has its mark on fraud. The claims made were suspicious and had raised to 25% in the just last two years nationwide and had an increase from 74,147 to 91,798 between 2008 to 2010 as per National Insurance Crime Bureau’s latest reports.
Highlights on Fraud
There are few major scenarios lined up as fraud. Inflated towing, storage bills and fraud on auto glass which are found to be occurring regularly at higher rates. An investigation set up in order to bring such crime to highlight proved that many car insurance companies have faced false claims. In many instances even the policy holder will not be aware of the fraud.
A special investigation manager reported an incident where there was a scam on auto glass. Vendors were involved in the scam where they had a shop nearby gas stations and would approach motorists to offer a help in fixing their windshields damaged. Though the windshields were not found damaged, the vendor just filled up the crack or faked to fix the chip and a bill was sent to owner’s insurance company. The percentage of such claims is soaring high and has reached its heights. The car insurance industry has also been facing problems with the inflated towing and storage bills from towing companies for quite some time now. The count is growing and suspicious claims are being made. This intact is causing a burden by increasing premium rates. Make sure you are aware of such incidents and clearly assess your insurance claims.