What role does asymmetric information play in adverse selection?

Adverse selection arises because applicants often have more information about their health or risk profile than insurers do. If insurers cannot accurately assess risks, they may set prices too high or too low, leading to financial imbalances.

Does business interruption insurance cover government-mandated shutdowns?

Coverage depends on policy terms, but many standard policies exclude losses from government-mandated shutdowns unless physical damage to the property occurs.

How do I choose the best whole life insurance policy?

Consider factors such as coverage amount, premium affordability, insurer reputation, policy flexibility, and available riders. Comparing different policies and working with a financial advisor can help you find the best whole life insurance plan that meets your financial goals.

Can an insured change the terms of a policy?

The insured can request changes, but only the policyholder (if different) or insurer has the authority to approve them. Endorsements or amendments must be submitted to and accepted by the insurance company to modify the policy’s terms.

What is business insurance and what types exist?

Business insurance includes general liability, property insurance, workers’ compensation, professional liability, cyber liability, and business interruption insurance, protecting businesses from financial losses.

Do I have to report life insurance payouts on my taxes?

Life insurance payouts are generally not taxable as income. However, if the policy is part of a taxable estate, estate tax may apply. Additionally, interest earned on the life insurance payout may be taxable. Be sure to consult a tax advisor for specific guidance.

Are temporary or seasonal workers covered under employer liability insurance?

Yes, temporary and seasonal workers are typically covered, but employers should check their policy details to ensure proper coverage for non-permanent employees.

Can private health insurance cover pre-existing conditions?

Many plans cover pre-existing conditions, but coverage terms and waiting periods may vary depending on the insurer and policy regulations.