Policies of Insurance Companies

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The overall policy of insurance companies is that they assume risk for their clients. In other words, clients pay the insurance companies money and the insurance companies take the risk that they might have to pay their clients larger sums of money in the future. However, in order to minimize risk, insurance companies adopt strict policies.

Premiums

Insurance policyholders pay premiums to their insurance companies based on estimates of how risky the policyholders are. Insurance policyholders who want to reduce the price of their premiums should take steps to make themselves less risky to insurance companies.

Risk Factors

Health insurance companies often assign policyholders higher premiums if they smoke. Smokers are more likely to get respiratory diseases, like lung cancer. Smoking also can damage a person's overall health.

Safety

Drivers who have been in a previous accident often have to pay higher insurance premiums in order to compensate for the fact that the auto insurance company sees the policyholder as a greater risk. However, policyholders who have demonstrated a safe driving record usually receive lower insurance rates.

Age and Gender

Age and gender often play a role in the price of insurance premiums. Health insurance tends to be more expensive for women and the elderly. Car insurance tends to be more expensive for men and teens.

Special Cases

Insurance companies sometimes have special case management programs for individuals who are suffering from serious medical problems, according to the University of Illinois.

Coinsurance

Some insurance companies have coinsurance plans. The policyholder pays for part of his medical bills and the insurance company pays the rest, according to the University of Illinois.

Underwriters

Insurance salesmen used to decide whether or not to sell insurance to a particular client. However, as of 2010, insurance underwriters are largely responsible for determining whether or not a potential client becomes an actual client. Underwriters usually need to examine the insured individual or business in order to determine if the individual or business is worth the risk. Underwriters often travel to a place of business to assess operations, according to the University of Missouri.

Investigations

According to the U.S. Bureau of Labor Statistics, when a claims adjuster or examiner suspects that an insurance claim is fraudulent, a claims investigator is sent to determine whether or not it is legitimate.

2016 Salary Information for Claims Adjusters, Appraisers, Examiners, and Investigators

Claims adjusters, appraisers, examiners, and investigators earned a median annual salary of $63,670 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, claims adjusters, appraisers, examiners, and investigators earned a 25th percentile salary of $48,250, meaning 75 percent earned more than this amount. The 75th percentile salary is $78,950, meaning 25 percent earn more. In 2016, 328,700 people were employed in the U.S. as claims adjusters, appraisers, examiners, and investigators.