Basic insurance concepts -- Insurance 101 -- training is necessary for all employees of insurance companies. To do their job and assist customers, employees need a solid foundation of insurance concepts training. She must understand and explain insurance types, coverage types, payments, claims and resolve issues. A combination of instructor-led classroom training, role-playing activities and self-study with policies and guides provides an appropriate mixture of training.
The fundamentals of health insurance training must cover concepts such as preauthorization of services, claims, referrals, provider networks and premiums, deductibles and co-insurance. To understand health insurance, train staff on the common types of health insurance plans -- health maintenance organizations, preferred provider organizations, exclusive provider organizations, point of service and indemnity. An explanation of the differences of each will help you learn the basic concept of each plan.
Auto insurance training may start with learning the ins and outs of a car insurance policy. Start with a detailed training session on policy coverage including personal injury protection, uninsured motorist coverage, property damage liability, bodily injury liability, collision coverage and comprehensive physical damage. Training must include add-on products such as towing, car rental and roadside assistance. Finally, auto insurance concepts such as adjusting, claims and lapse and grace periods need understanding prior to working with customers.
Homeowners insurance comprises several coverage types, commonly referred to as Coverage A-F. Anyone selling or working with homeowners insurance needs a solid understanding of each. Employees must be knowledgeable about coverage for dwelling (Coverage A), other structures (Coverage B), personal property (Coverage C), additional living expenses (Coverage D), personal liability (Coverage E) and medical expenses (Coverage F). Representatives receive training on how much coverage is required or suggested, claims submission and processing. Customer service training is helpful in preparation of handling claims from distressed homeowners.
Premiums and Deductibles
All types of insurance policies – health, auto and homeowner – use the terms premiums and deductibles. Training must include each. Premiums are the bills for the insurance policy, and are due monthly, quarterly or annually, depending on the policy. Deductibles are dollar amounts that the insured policyholder pays out-of-pocket before the insurance company will pay. Additionally, for employees in health insurance, training must encompass how co-pays and co-insurance works. Besides coverage, most policyholders’ questions center on premiums and deductibles, requiring that the employee receive training in these areas.
- U.S. Department of Labor Bureau of Labor Statistics: Definitions of Health Insurance Terms
- U.S. Department of Labor Bureau of Labor Statistics: Insurance
- Geico: About Auto Insurance
- Progressive. "Full Coverage Car Insurance." Accessed June 19, 2020.
- Insurance Information Institute. "Auto Insurance Basics—Understanding Your Coverage." Accessed June 19, 2020.
- Nationwide. "What Is Full Coverage Auto Insurance?" Accessed June 19, 2020.
- Allstate. "What Is 'Full Coverage'?" Accessed June 19, 2020.
- Progressive. "What Is Gap Insurance?" Accessed June 19, 2020.
- Allstate. "Roadside Assistance Frequently Asked Questions." Accessed June 19, 2020.
- State Farm. "Replacement Parts." Accessed June 19, 2020.
- Allstate. "Does Car Insurance Cover Windshield Damage?" Accessed June 19, 2020.
- Nationwide. "Vanishing Deductible." Accessed June 19, 2020.
Francine Richards is a licensed multi-state insurance agent with years of human resources and insurance industry experience. Her work has appeared on Blue Cross Blue Shield websites and newsletters, the Houston Chronicle and The Nest. Richards holds a Bachelor of Arts in communications from the University of Maryland.