What is the difference between a partial and total loss claim?

A partial loss claim covers repairs when damage is fixable, while a total loss claim applies when the cost of repairs exceeds the insured item’s value. For example, if a car is completely wrecked in an accident, it may be declared a total loss.

Can I cancel my trip for any reason with this insurance?

Most trip cancellation policies only cover specific reasons such as illness or emergencies. However, some providers offer "cancel for any reason" (CFAR) options that allow more flexibility for cancellations.

Is Variable Life Insurance a good investment?

It can be a good long-term investment for those comfortable with market risks. It offers tax advantages and potential growth but requires active management and market knowledge. Those seeking guaranteed returns may prefer Whole Life or Indexed Universal Life policies.

How is Insurtech transforming the insurance industry?

Insurtech is revolutionizing the industry by offering digital claims processing, AI-driven underwriting, personalized pricing, and automated customer support. It allows insurers to analyze risks more accurately, prevent fraud, and offer on-demand or usage-based policies, making insurance more accessible and efficient.

Why do reinsurance contracts have limits and exclusions?

Reinsurance contracts have limits and exclusions to define the extent of coverage provided by the reinsurer, ensuring that only certain types of risks are covered.

What is Risk-Based Capital (RBC) and how does it apply to insurers?

RBC is a regulatory framework used in the U.S. that requires insurers to hold capital proportional to the risks they assume. It considers factors such as underwriting, market, and credit risks. If an insurer’s RBC falls below a certain level, regulators may intervene to prevent financial instability.

What types of cyber threats does cyber insurance cover?

Cyber insurance covers hacking, data breaches, ransomware attacks, phishing scams, denial-of-service (DoS) attacks, and other cyber threats that compromise data security and business operations.

How do premiums work for public health insurance?

Public health insurance premiums are often based on your income or tax bracket, meaning higher earners may pay higher premiums. In some cases, premiums are subsidized or waived for low-income individuals.