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

A deductible is the amount you pay out-of-pocket before your insurance policy starts covering expenses. A higher deductible generally leads to a lower premium, but it also means you will pay more in case of a claim.

What does homeowners liability insurance cover?

It covers bodily injuries to guests, legal defense costs, medical expenses, and damages you or household members unintentionally cause to another person’s property, such as a neighbor’s home or car.

What role do reinsurance brokers play?

Reinsurance brokers act as intermediaries, helping insurers find suitable reinsurance coverage, negotiate terms, and structure contracts based on their risk profiles.

Are E&S insurers reliable since they are non-admitted?

Yes, many E&S insurers are financially strong and rated by agencies like A.M. Best. While they are not backed by state guaranty funds, they must meet financial solvency requirements and often have strong surplus reserves. Working with a reputable surplus lines broker ensures policy reliability.

How does usage-based insurance work?

UBI programs track driving data such as speed, braking, acceleration, and mileage through a device or smartphone app. Insurers use this data to adjust premiums based on driving performance.

Do in-network and out-of-network services have different coinsurance rates?

Yes, in-network providers usually have lower coinsurance rates, while out-of-network services often have higher costs and limited coverage.

Can I get long-term disability insurance if I have a pre-existing condition?

Many LTD policies have exclusions for pre-existing conditions, typically excluding coverage for disabilities related to conditions diagnosed or treated within a specified period (e.g., 12 months) before coverage begins. Some policies may provide coverage after a waiting period.

What is an "attachment point" in non-proportional treaty reinsurance?

The attachment point in non-proportional treaty reinsurance is the level of loss that must be reached before the reinsurer becomes liable for a claim. For example, if the attachment point is $1 million, the reinsurer will only cover losses that exceed this amount. This threshold is set to ensure the reinsurer only covers large, catastrophic losses while the insurer handles smaller claims.