What role does the insured play in subrogation?

The insured must cooperate with the insurer during subrogation by providing statements, evidence, or testimony if needed. Failure to cooperate could violate policy terms and impact claim settlements. However, the insurer typically handles the legal aspects, so direct involvement from the insured is minimal.

What is an annual deductible?

An annual deductible applies to total claims over a policy year. Once the insured meets this amount, the insurer covers all additional claims for the rest of the policy period.

What is blockchain technology?

Blockchain is a decentralized digital ledger that records transactions securely across multiple computers, making data immutable and transparent.

How do deductibles and co-pays reduce moral hazard?

Deductibles and co-pays require policyholders to share in the costs of claims, discouraging unnecessary or excessive use of insurance benefits. This helps control costs and reduces the likelihood of reckless behavior.

How do I ensure I have adequate business interruption coverage?

Businesses should regularly assess revenue, fixed costs, potential risks, and policy limits to ensure coverage matches their financial exposure in case of disruption.

What is Universal Life Insurance?

Universal Life Insurance (UL) is a type of permanent life insurance that provides lifetime coverage while offering a flexible premium and an investment component. Policyholders can adjust their premiums and death benefits within certain limits, and a portion of the premium goes into a cash value account that earns interest over time.

Does the insured have to pay premiums?

The policyholder is responsible for paying premiums, but if the insured is a different person, they may not have direct payment obligations. However, in some cases, insured individuals may contribute to costs, such as in employer-sponsored health insurance plans.

What is liability insurance and who needs it?

Liability insurance covers legal expenses, medical bills, and damages if you are held responsible for injuries or property damage, essential for businesses, professionals, and homeowners.