State Verification

• State verification occurs when a state creates a program to help organize auto insurance for all state drivers. States require proof of insurance for legal driving, but not all states run insurance verification programs, which are typically online databases that keep records of all those with insurance in the state. This makes it much easier for law enforcement organizations to verify insurance information on the go, and allows state organizations such as a DMV to manage licensing more easily.
  
  

Health Verification

• Health insurance verification is one of the most common verification processes in the United States. Hospitals and clinics tend to be very thorough when verifying health insurance, and for good reason: They want to make sure they're paid. Insurance companies often refuse to pay for health expenses if the insurance is shown to be somehow invalid or for the wrong person, so verification is necessary for health organizations to profit.
  
  

Lender Verification

• Lenders offering mortgages also verify insurance, but they're concerned with property insurance, specifically homeowner's insurance. According to government requirements, especially for government-subsidized loans such as FHA loans, homeowner's insurance is required. Lenders may require homeowner's insurance themselves before making loans. This insures homes against perils such as fire and theft and provides the homebuyer with a measure of protection as he moves onto his property.
  
  

Insurer Verification

• Insurance companies also verify insurance. They're concerned primarily with the claims made and the details of the policy. When someone makes a claim on a policy, the insurance company representative starts by verifying the policyholder's identify, then making sure that the events that occurred are actually covered by the policy. A claims adjuster usually personally inspects damage or events before the insurer agrees to pay.