Determine if the Policy Is Valid
When a loss is investigated, the claims adjuster must also investigate the background of the policy itself. In most cases the insurer will not learn of a misrepresentation or concealment until a claim is made. Fraud in the inception of a policy can only be discovered if the adjuster completes a thorough investigation. This includes, at the least, the application submitted by the insured at the time the policy was issued. If possible, it should also include statements of fact made by the insured to the agent, the company underwriter, the loss prevention engineer, or the pre-risk inspection service.
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