That’s correct. Here’s a more detailed explanation of each step:
1. Application
– The policyholder submits an application for insurance coverage, providing personal and risk-related information.
– The application may be submitted online, through an agent, or directly to the insurance company.
2. Underwriting
– The insurance company’s underwriting department reviews the application to assess the risk.
– They may request additional information, such as medical records or vehicle history.
– The underwriter determines the premium based on the risk assessment.
3. Policy Issuance
– If the application is approved, the insurance company issues the policy.
– The policy outlines the terms and conditions, including the coverage, premium, deductible, and policy limits.
4. Claim Filing
– If the policyholder experiences a covered loss, they file a claim with the insurance company.
– The policyholder provides documentation to support the claim, such as police reports or medical bills.
5. Claims Processing
– The insurance company’s claims department reviews the claim to determine if it’s covered under the policy.
– If the claim is approved, the insurance company provides payment to the policyholder or directly to the service provider (e.g., hospital or repair shop).
– If the claim is denied, the policyholder may appeal the decision or seek external dispute resolution.