What is liability insurance, and what does it cover?

Liability insurance protects against financial losses due to legal responsibility for bodily injury or property damage caused to others. It is a key component of auto, homeowners, and business insurance policies, covering medical bills, legal fees, and settlements.

What impact did the Civil War have on life insurance in the U.S.?

The Civil War led to an increase in life insurance policies as families sought financial protection against wartime casualties and economic instability.

How can I avoid having my insurance policy lapse?

To avoid a policy lapse, set up automatic payments or reminders for your premium due dates. Paying on time ensures continuous coverage and prevents the hassle of dealing with reinstatement procedures or coverage gaps.

Does travel medical insurance cover adventure sports and activities?

Standard plans may exclude high-risk activities like scuba diving, skiing, or bungee jumping. Travelers engaging in extreme sports should look for policies that include adventure or sports coverage.

What happens when a term insurance policy expires?

When a term policy expires, coverage ends unless it is renewed or converted. If the insured is still alive, no death benefit is paid.

Is the insured liable for damages if they have liability insurance?

Liability insurance covers the insured against claims from third parties for bodily injury or property damage. If the insured is found legally responsible, the insurer will cover damages up to the policy limits. However, the insured may still be liable for amounts exceeding the coverage.

How does an insurance policy renewal process work?

Insurance policy renewal is the process of continuing coverage after the policy term ends. The insurer typically sends a renewal notice, and the policyholder can choose to renew the policy, often with an updated premium amount or policy terms. Renewals might involve adjustments based on changes in risk factors, claims history, or updated underwriting practices. It’s essential to review your policy during renewal to ensure it still meets your needs.

What types of insurance policies include subrogation?

Subrogation is common in auto, health, property, and workers’ compensation insurance when another party is liable for the damages.