2007-11-28 07:00:11 · 4 answers · asked by dugam 2 in Business & Finance ➔ Insurance
They probably just cash them, and if the check doesn't clear, then you don't get your money. Banks and other financial institutions tend to trust corporate checks more than personal ones.
*Edit* Oh wait, I think I know what you're asking. Do you mean: Will the bank verify for you whether there are sufficient funds in the insurance company's account to cover the check? If that's your question, then my answer is no. They probably will not give you that kind of account information. Just deposit the check and see what happens.
2007-11-28 07:08:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
"verify" is the wrong verb.
many or most insurance claim "checks" are actually drafts and payable only if and when the insurance company accepts them.
[premium reimbursement checks are an exception]
it is common in the industry for an insurance adjuster to fill out paperwork and "write" the owner(s) of the property a draft on the spot. However, the adjuster may not be an employee of the company, but only someone hired to inspect the damage and make a settlement offer. In that case the draft is not good until the insurance company approves it.
Banks look for the telltale words "upon acceptance, Pay to the order of" (or similar). These words denote a draft.
If you deposit a draft in your bank account, the bank will likely 'hold' the funds for 10 days to 2 weeks to give the insurance company time to decide and tell them they'll pay this specific item.
***
If you were asking if the drawee bank [the one it is written on] will certify an insurance check, the answer is "yes -- in the usual course of business" -- which means that they'll ask the insurance company's Treasury department if this item was really written for this amount to this person.
Certifying a check makes it into an obligation of the bank, rather than the firm that wrote it. [The bank collects its money immediately to make sure the check is good.]
Only the bank against whom a check is drawn can certify it.
does this help?
2007-11-28 07:13:54 · answer #2 · answered by Spock (rhp) 7 · 0⤊ 0⤋
No. They just don't let you use the money until the check clears - which is anywhere up to three weeks.
2007-11-28 11:08:52 · answer #3 · answered by zippythejessi 7 · 0⤊ 0⤋
What does "verify" mean? If you're trying to forge one, eventually, it will be found out.
2007-11-28 07:58:08 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋