Clawsbacks

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Clawsbacks Commission paid out to an agent and retrieved by the insurer due to policy cancellation of the original commission resultant policy prior to full payment of the policy by the policyholder. In a second scenario, a clawback also refers to the process of an insurance company recovering money it paid out on a claim after it determines the claim was invalid or fraudulent. This can occur for several reasons, including: Misrepresentation: If the policyholder misrepresented information on their application, the insurance company may claw back the claim payment. Non-disclosure: If the policyholder failed to disclose material information on their application, the insurance company may claw back the claim payment. Fraudulent activity: If the insurance company determines that the claim was fraudulent, they will claw back the payment and may also take legal action against the policyholder. Here are some additional points to consider: -Clawbacks can be a controversial issue, as they can raise concerns about fairness and due process. -There are often legal restrictions on when and how clawbacks can be implemented. -Clawbacks can have a significant impact on individuals and organizations, both financially and reputationally. It is important to note that the specific rules and regulations surrounding clawbacks can vary depending on the jurisdiction. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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