What is the difference between an insurance draft and an insurance check?
In general terms, an insurance draft is issued by a field representative of an insurance company, and the insurance company gets the final say-so on whether it's paid when the draft reaches the company. Its decision has to be made quickly, because it only has one business day to refuse payment if the draft was improperly issued.
An insurance check is typically issued by the insurance company's main offices after the insurance contract is examined and the company is assured that payment is appropriate.
A draft might be issued to settle a casualty loss such as building damage from a storm or an automobile damage claim from a collision.
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In general terms, an insurance draft is issued by a field representative of an insurance company, and the insurance company gets the final say-so on whether it's paid when the draft reaches the company. Its decision has to be made quickly, because it only has one business day to refuse payment if the draft was improperly issued.