Can I choose my deductible amount?

Yes, most insurance providers allow policyholders to select their deductible. A higher deductible usually results in lower premiums, while a lower deductible leads to higher premium costs. The right choice depends on your financial situation and risk tolerance.

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What are the ethical concerns surrounding AI?

Ethical concerns include bias in AI algorithms, data privacy issues, job displacement, lack of transparency, and the potential misuse of AI for harmful activities.

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What role does asymmetric information play in insurance?

Asymmetric information occurs when one party has more knowledge about a risk than the other. In insurance, policyholders often know more about their true risk levels than insurers, leading to adverse selection if they exploit this information by purchasing policies that benefit them disproportionately.

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How much trip cancellation coverage do I need?

Your coverage should match the total cost of prepaid, non-refundable expenses, including flights, hotels, tours, and other travel bookings that you cannot recover if you cancel.

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Can businesses use term insurance for key employees?

Yes, businesses can use key person term insurance to protect against financial loss if a crucial employee or executive passes away unexpectedly during the policy term.

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What is an insurance policy?

An insurance policy is a legal contract between the insurer and the policyholder outlining the coverage terms, conditions, premium costs, and claim procedures. It defines what risks are covered, policy limits, exclusions, and the insurer’s obligations, serving as the foundation for the insurance relationship.

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What does auto insurance cover?

Auto insurance covers damage or loss of a vehicle due to accidents, theft, vandalism, or natural disasters. It typically includes liability, collision, and comprehensive coverage for drivers and passengers.

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What is the difference between arbitration and subrogation?

Subrogation involves recovering costs from a third party, while arbitration is a dispute resolution process used when insurers disagree on fault.

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