Insurance Verifier Interview Questions And Answers

Insurance policy is categorised into two

a) General or Non-life Insurance
b) Life Insurance

‘Declaration page’ in insurance policy, bears all the information of thepolicy holder like name, address, vehicle information, type of coverage and loss payee information.

The paid value is something, when the insurer stops paying the premium, but do not withdraw the amount. The sum assured by the insurance company is reduced proportionally depending when insurer has stopped paying the premium. You will get the amount at the end of the term.

Participating policy is a policy, where the profit or benefits of the insurance company is shared with the insured in theform of a dividend or reversionary bonuses. While, the non-participating policy, does not share their profit with insured.

‘Indemnity’ term in theinsurance is used to cover the loss or damage claimed by another person. For example, the owner of the gym has indemnity insurance to compensate it customers in case of injury or accident and to avoid the financial loss due to a lawsuit.

In the disability income insurance or loss of income insurance, the elimination period is the amount of time you have to wait before benefits are paid. In other words,it is a time-period between the beginning of the injury and the benefits you are paid off. Longer the Elimination period lower the premium and vice versa.

An insurance policy that covers the damage caused by another person or party is known as third party Insurance. In this type of insurance, the insured is the first party, insurance company is the second party while the damage done by another is referred as the third party. This type of Insurance policy is purchased for vehicles, so that in case of the accident they can claim it.

PLPD stands for ‘personal liability and property damage’. Personal liability covers when an individual cause injury to others in an accident while property damage is done when any property get damaged. In both, the injured party or third party will claim for insurance money from the insurance company of the offender.

This policy provides you with coverage against loss or damage to insured property (i.e. house, shop and factory) caused by fire, lightning or explosion.

The risks that are covered by general insurance are:

☛ Property loss, for example, stolen car or burnt house
☛ Liability arising from damage caused by yourself to a third party
☛ Accidental death or injury

The coverage period for life insurance is usually more than a year. So this requires periodic premium payments, either monthly, quarterly or annually.

The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.

If it is not a long duration that you have bought the policy, then you can replace the policy. But in other case it is not advisable as you will lose all the benefits of the previous policy also the premium will go high as you go older. Also, the two-year period of contestability will also begin again.

The loss payee is a person or institution (Bank) that receives the insurance payment on the loss of the property or vehicle you own. It is a legal definition used to cover the investment of other parties or bank that is owned by you. For example, you have a car on loan, and also you have insurance for that car. Now you met an accident, and your car is a total loss(meaning completely damaged beyond repair). Your bank still owes money from you in such case when you claim the insurance; the insurance company will pay money directly to Bank or person you owes money. Here bank is a loss payee.

BASIC + DA (Last Pay drawn) X 15 /26 X No.OF YEARS WORKS.

Series of payments paid to you until you pass away. Types of annuity include immediate annuity or deferred annuity.

In case of fire or natural calamities, if your house is completely damaged and if you want to claim your personal property to insurance company, inventory list is very important. The insurance company will only pay you for those items where you are able to show the evidence that the damaged items belong to you. So, it is advisable to keep a list of inventory in a safe place.

‘Group life insurance’ is a single policy that covers an entire group. Such policy is taken by an employer for the bigger organization to cover their employee, as an individual policy holder, it may cost more than a group policy.

‘Additional Insured’ is the status associated mainly with property insurance and liability insurance. The additional insurer will be protected under the main policy holder. For example a vehicle insurance policy which covers all the members of family and not only the owner.

If it is not a long duration that you have bought the policy then you can replace the policy. But in other case it is not advisable as you will lose all the benefits on the previous policy also the premium will go high as you go older. Also, the two year period of contestability will also begin again.

‘Contestable period’ is usually 1 or 2 years, during which the insurance company holds all the right to investigate the policy and decide whether to pay or not to pay to the insurer.

The term ‘insurance coverage’ means, when an individual takes an insurance policy the insurer will be covered by insurance company for aspecific amount for themselves or the things that he had taken the insurance policy, for which he would be paying premiums to the insurance company. The insurance company will pay the insurer in case of damage or policy claimed by insurer according to their ‘insurance coverage’.

Deductible is one of the several types of clause that are used by the insurance company as a threshold for policy payment for health insurance or travel insurance. Deductible is a decided amount that you have to pay from your pocket while claiming theinsurance. For example, you have a deductible of $500,and you haveinsurance coverage for $2000, then you are responsible for paying for $500 and the remaining amount $1500 will be paid by insurance company.

‘Free Look Period’ is a time-period where the insurer can cancel their newly bought policy in a specific period of time from the date of issuing the policy without any penalties or surrender charges.

Yes, it is possible to get the full payment in free look period; you can cancel your new policy in 15 days by returning the policy to the life Insurance company after you receive all the documents related to the policy.

► There are two type of life insurance

a) Term Life Insurance:
Term life Insurance is a type of life Insurance, which provides coverage for fixed rate of premium for a limited period of time. Term Insurance can cover you for the term of one or two years.

b) Permanent Life Insurance:
Permanent Life Insurance coversan individual for the whole life; people take permanent life insurance about 25-30 years normally. The premiums are slightly higher than Term Life Insurance.