What Do Insurance Companies Look For In Background Checks?

Finding out if your prospect has ever been in a car accident or if they have ever been arrested for a DUI is part of an applicant background check. It’s worth noting that this check is only required for jobs that require employees to drive company-owned vehicles.

Does insurance company do background check?

First, insurance firms must conduct background checks to verify the policyholder’s identification. This helps them to verify that the policy they’re issuing is going to a legitimate person who is legally required to have vehicle insurance.

Second, background checks are required to defend against fraud. People with nefarious intentions have been known to approach insurance firms with false claims for third-party car insurance.

Third, insurance companies must do background checks on policyholders to ensure that they are not victims of identity theft. There have been instances where unwary car owners have been tricked out of their money and personal information by phony policies.

Fourth, insurance companies do background checks to ensure that premiums can be adjusted for individuals based on their driving habits. It is not a viable business model to charge the same premium to someone who files claims frequently and someone who files claims only sometimes. Background checks also help to reduce such occurrences.

Fifth, insurance firms are obligated to follow domestic and international anti-money laundering and Know Your Customer requirements, and as a result, are required to do specific background checks on policyholders in order to avoid crimes such as money laundering and other financial crimes.

What typically shows up on a background check?

A background check’s contents will differ depending on the industry, the type of job an applicant is looking for, and the employer’s preferences. Criminal history, education, past employment verifications, and reference checks are the most typical background checks.

Pre-employment drug testing results may also be included in these reports. The idea is for a company to be confident that a new recruit will not cause any immediate problems.

What is a social security number trace?

A SSN trace is a database search that reveals a social security number’s year of issuance, state of issuance, and address and name history. It’s an important part of a background check because it uncovers a lot more information than a simple name or address search. The SSN trace is such an important part of background checks that, according to a poll conducted by the Professional Background Screening Association (PBSA), 80 percent of companies that undertake background checks also include an SSN trace for all candidates.

When evaluating the utility of an SSN trace, it’s crucial to remember what it isn’t. A SSN tracing is sometimes misunderstood as a form of identification verification. A SSN trace, on the other hand, can discover aliases, addresses, and the validity of a certain SSN, but it cannot confirm that the SSN belongs to the person who submitted it. As a result, SSN trace is an effective background screening technique that works best as part of a larger background screening procedure.

What causes a red flag on a background check?

Inconsistency in Education or Experience Inconsistency is one of the most prevalent red flags in a background check. To make oneself more appealing to you and your firm, your potential employee may make up facts about their schooling, work experience, or the roles and responsibilities they held.

You have a poor employment history.

While gaps in employment history aren’t always a red flag, a pattern of unemployment or a run of short-term jobs could indicate that an applicant is untrustworthy and not worth investing in. Internships, training, and seasonal work, which are viewed as advantages for entry-level positions, are not included.

You lied on your resume, or there are inconsistencies.

Employers view dishonesty as a major red flag, and it could lose you a job. No matter how well-written or exaggerated your resume is, if they discover you lied about your education, abilities, or qualifications, it will almost certainly be discovered via a background check.

Employers generally always call references to confirm data about former positions, such as the length of time you worked there and to get a sense of your responsibilities and work ethic. A background check might also reveal when and where you received your education.

You have a criminal history.

When employers screen applicants, one of the first things they look for is a criminal record, which frequently results in job applicants being dismissed. However, depending on the hiring requirements of the business and the seriousness of the crime, an applicant may still be employed if they disclose their criminal past to the employer. Minor infractions or long-ago occurrences may be disregarded, but significant crimes will almost certainly keep you out of the running.

You received bad references from previous employers.

A good recommendation will go a long way toward ensuring that you get the job. Employers can discover more about your personality, work ethic, and overall aptitude for a position by doing so. What happens, though, if a previous boss disparages you or gives you a poor review? It is entirely dependent on the company.

A single bad reference may not jeopardize your chances, but a string of terrible references will almost certainly disqualify you. However, many employers do not offer information other than employment dates, job title, and compensation due to the possibility of defamation lawsuits filed by former employees.

You have a poor credit history.

Credit checks are typically reserved for positions in the banking and federal sectors. So, if you’ll be dealing with money a lot, a bad credit history is a liability because it could affect your ability to manage money appropriately.

You failed a drug or alcohol test.

Drug and alcohol testing are also job-specific, such as when candidates are required to drive, operate machinery, or execute highly skilled tasks. If a candidate fails a drug or alcohol test, the firm may consider them a liability.

You have a bad driving record.

Your driving history, like your credit history and substance testing, will only be checked if the employment needs you to drive. Multiple citations for speeding, driving under the influence, or a conviction for reckless driving can all contribute to a poor driving record.

You have questionable social media activity.

This is a complex issue because there are numerous rules and legislation in place that safeguard the rights of job candidates when it comes to social media.

While social media screening is not required as part of a background check, it is allowed, and many employers utilize it or screening services to learn more about a candidate’s character after the interview.

Employers often look for hate speech, profanity, or any other unpleasant material that could reflect poorly on the organization and cause future problems.

You are not entitled to legally work in the United States.

Employees must be eligible to work in the United States legally. All citizens and non-citizens must fill out an Employment Eligibility Form during the recruiting process (I-9). The business will require job seekers to produce documents proving their identification and employment authorization.

What is considered a clean background check?

A “clean” criminal background check means that no serious felonies or misdemeanors were discovered. Companies, on the other hand, are usually most concerned with convictions that have a direct impact on the job at hand.

Does State Farm do background checks?

Yes, according to their website, they will do a background check prior to making an employment offer.

You’re in luck if your state appears on this list. They’re only seven years old. If your charge occurred more than six years ago, we recommend waiting a year before submitting here:

Keep in mind, however, that certain jurisdictions will look at your whole criminal record, including those situations where you were found not guilty. If your state appears on this list, be aware:

What felony convictions might have a hard time getting hired here?

Is it true that State Farm employs felons? They say they’ll take those with a criminal background into consideration, but some felonies will impair your prospects. State Farm’s hiring policy on specific convictions is as follows:

“Federal law prohibits State Farm from employing persons with certain convictions for criminal offenses involving dishonesty, breach of trust, or money laundering, including offenses involving the illegal manufacturing, sale, distribution, or trafficking in controlled substances, or who entered into certain pretrial diversion or similar programs in connection with the prosecution of such offences, without the prior written consent of the applicable regulatory authorities.”

Have you applied for a job or worked here? Share your experiences!

With a felony, did you find a job with State Farm? Is it possible that this essay played a role in that? We’d like to know more about it. This is your opportunity to assist someone else in our community.

What is a Level 3 background check?

The most prevalent form of background check is Level 3. Criminal history, education, past employment history, and reference checks are all part of the process. If requested, the results of pre-employment drug testing could be included in the level three background check reports. The goal is to hire the proper individual and ensure that he or she will not cause any anticipated problems in the job before ordering a level three background check.