What is proportional treaty reinsurance?

Proportional treaty reinsurance involves sharing premiums and claims between the insurer and the reinsurer in a fixed percentage. Common forms include quota share treaties, where risks are shared evenly, and surplus treaties, where only risks above the insurer’s retention are ceded.

Can I customize my homeowners insurance policy?

Yes, homeowners insurance policies can often be customized to fit your needs. You can add endorsements or riders to cover specific items, such as expensive jewelry or collectibles. You can also adjust coverage limits, deductibles, and liability protection. Working with an insurance agent allows you to tailor the policy to your unique situation and ensure you have the proper coverage for your home and belongings.

What is the return-of-premium term insurance option?

This option refunds all premiums paid if the insured outlives the term, but it comes with significantly higher premium costs.

Are E&S insurers regulated?

Yes, E&S insurers are regulated but in a different way than standard insurers. They are not subject to state rate and form filing requirements, but they must comply with surplus lines regulations and be financially sound according to state surplus lines laws.

How does Usage-Based Insurance work?

UBI works by tracking the policyholder’s driving habits using a telematics device or smartphone app. The data collected helps insurers adjust premiums based on driving behavior.

What role does comparative negligence play in subrogation?

In states with comparative negligence laws, subrogation may be reduced or denied if the insured shares fault for the loss. The insurer can only recover the percentage of damages corresponding to the other party’s degree of responsibility.

Does travel insurance cover evacuation due to COVID-19?

Some insurers provide emergency evacuation for severe COVID-19 cases if medically necessary. However, coverage varies, so travelers should check their policy’s terms regarding pandemic-related evacuations and exclusions.

How does underwriting affect my insurance premium?

The underwriting process evaluates your risk profile, and based on this assessment, the insurer sets your premium. Higher risk factors typically lead to higher premiums, while lower risks can result in lower premiums.