Customer Concern Insurance Company tries to settle claims as quickly as possible.In certain cases,agents can present payments to claimants which are cleared through the banking system like a check,but must be passed through the Insurance Company for approved prior to payment.This is an example of a
A) zero balance account.
B) payable-through draft.
C) insurance float voucher.
D) post-dated check.

Question

Quizplus · Accepted Answer

This situation describes a payable-through draft, which is a type of check that is cleared through the bank account of one party (in this case, the insurance company) and sent to another party (the claimant) for deposit in their own account. The insurance company retains control over the payment until it is approved for release.

Customer Concern Insurance Company Tries to Settle Claims as Quickly