Does cyber insurance cover regulatory fines and penalties?

Some policies cover regulatory fines and penalties resulting from non-compliance with data protection laws like GDPR, CCPA, and HIPAA. However, coverage depends on the policy terms, insurer, and whether the fines are legally insurable in the policyholder’s jurisdiction.

Can I use public health insurance abroad?

Public health insurance typically only provides coverage within the country where it is offered. Some countries have reciprocal agreements that allow limited coverage for emergencies while traveling abroad.

What is retrocession in reinsurance?

Retrocession is when a reinsurer transfers a portion of its assumed risks to another reinsurer to further diversify its exposure.

What is a deductible, and how does it affect my claim?

A deductible is the amount you pay out-of-pocket before the insurer covers the remaining cost. If your deductible is $500 and your claim is for $2,000, the insurer will pay $1,500. Higher deductibles often result in lower premium costs.

What is retrocession in reinsurance?

Retrocession is when a reinsurer transfers part of its risk to another reinsurer, further spreading the liability to ensure financial stability.

Do deductibles apply to all types of claims?

No, some types of claims may not require a deductible. For example, many liability claims in auto and homeowners insurance do not require you to pay a deductible. Additionally, some health insurance services, like preventive care, may be covered before the deductible is met.

Is flood insurance required by law?

Flood insurance is required by law if your home is in a high-risk flood zone and you have a federally backed mortgage. Lenders require it to protect their investment in flood-prone areas.

How is replacement cost different from actual cash value?

Replacement cost covers the full cost to replace an item with a new one, while actual cash value subtracts depreciation to account for the item’s current value.