What are the differences between indemnity-based and index-based insurance?

Indemnity-based insurance compensates farmers for actual losses after an assessment, while index-based insurance provides payouts based on weather data. Index-based insurance is faster and avoids fraud risks but may not always reflect individual farm losses accurately.

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Do I need comprehensive insurance on an older vehicle?

If your car’s value is low, you may opt out of comprehensive insurance since the payout after depreciation may not justify the cost of the coverage.

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Is sum assured applicable in group life insurance policies?

Yes, group life insurance policies provide a predetermined sum assured for members, usually based on employer terms or salary levels.

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What is a split deductible?

A split deductible applies different amounts based on the type of claim. For example, in home insurance, a policy may have one deductible for standard damage and a higher deductible for disasters like hurricanes or earthquakes.

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Can AI be used for creative purposes?

Yes, AI generates music, art, literature, and designs using deep learning models, though it lacks originality and human emotional depth in creative works.

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What is the impact of moral hazard and adverse selection on premium pricing?

Both moral hazard and adverse selection drive up insurance costs. Moral hazard increases claims due to reckless behavior, while adverse selection results in a high-risk policyholder pool. Insurers compensate by raising premiums, making insurance more expensive for all consumers.

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Does trip cancellation insurance cover emergency medical cancellations?

Yes, if you, a family member, or a traveling companion suffers an unexpected illness or injury before departure, trip cancellation insurance can reimburse non-refundable expenses.

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Does third-party insurance cover theft?

No, third-party insurance does not cover theft or damage to the policyholder’s own vehicle; it only covers liability for harm caused to others.

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