What is General Average in Marine Insurance?

General Average is a principle where all parties in a sea voyage share losses proportionally when a voluntary sacrifice (such as jettisoning cargo) is made to save the vessel and remaining cargo. Marine Cargo Insurance typically covers General Average contributions.

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Do HMO plans cover emergency care?

Yes, HMO plans cover emergency medical services even if treatment is received outside the network. However, follow-up care must typically be coordinated within the HMO network to be covered.

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How do incentives help mitigate moral hazard?

Structured incentives like no-claim bonuses, discounts for safe behavior, and lower premiums for preventive measures encourage responsible actions and reduce risk-taking.

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How does an insurer improve its Claim Settlement Ratio?

Insurers can improve CSR by streamlining claims processing, investing in better customer support, having clearer documentation, and ensuring that claims assessments are fair and timely. A robust CSR often correlates with effective internal processes.

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What is the difference between an insurance company and a TPA?

An insurance company underwrites and assumes risk, while a TPA acts as an outsourced service provider handling administrative functions like claims processing, customer support, and compliance on behalf of the insurer.

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How long does marine freight insurance coverage last?

Coverage usually applies from the point of origin until the cargo reaches its final destination, as specified in the policy terms.

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How do I know if I need earthquake insurance?

Consider factors like your location, the age and construction of your home, seismic activity in your area, and whether you can afford repairs or rebuilding costs after an earthquake. If an earthquake would cause significant financial hardship, insurance is a good idea.

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Can I choose replacement cost coverage for all types of insurance?

Replacement cost coverage is available for most types of property insurance, including homeowners and auto insurance. However, some policies may offer a choice between replacement cost and actual cash value.

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