Employment screening

Employment screening, a risk assessment process in insurance underwriting, verifies applicant backgrounds to reduce fraud and liability. Insurers use employment screening to check criminal records, credit history, and previous claims for roles like commercial drivers or healthcare workers.

Employment screening reports may include data from the National Crime Information Center (NCIC) and state-level databases. Insurance companies require employment screening for positions involving access to sensitive client data or large financial transactions; examples include bank tellers and insurance adjusters.

Underwriters factor negative employment screening results–such as felony convictions–into premium calculations or policy eligibility decisions, per the findings of Your Insurance Info. The Fair Credit Reporting Act (FCRA) regulates how insurers obtain and use third-party background checks during employment screening.

Employers must provide written notice before conducting an insurance-related employment screen, per FCRA Section 604(b). Adverse action based on failed employment screenings obligates insurers to supply applicants with a copy of the report and a summary of their rights under federal law.