Does business property insurance cover liability claims?

No, standard property insurance does not cover liability claims. You need general liability insurance to protect against lawsuits related to bodily injury, property damage to others, or advertising-related claims.

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What is the difference between company action level (CAL) and regulatory action level (RAL) in RBC?

CAL is the threshold at which an insurer must take corrective actions to improve capital levels. RAL is a more severe stage where regulators step in to enforce corrective measures, such as restricting operations or requiring capital infusions.

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What does "named perils" coverage mean?

Named perils coverage only protects against specific risks explicitly listed in the policy, such as fire, theft, vandalism, or natural disasters like windstorms or hail.

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What is a Co-Payment?

A co-payment is the percentage of the claim amount that the policyholder must pay, while the insurance company covers the remaining balance. This arrangement is common in health insurance, where the insured pays a portion of the medical costs, typically after a deductible is met.

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Do riders increase my insurance premium?

Yes, adding riders typically increases your insurance premium because they provide additional coverage that extends beyond the basic terms of your policy.

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What is emergency medical evacuation in travel insurance?

Emergency medical evacuation covers transport to the nearest adequate medical facility or repatriation home if treatment isn’t available locally.

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Is whole life insurance subject to taxes?

The death benefit is generally paid to beneficiaries tax-free. Cash value growth is tax-deferred, and loans are not taxed as long as the policy remains in force. However, withdrawals exceeding premiums paid may be taxed, and surrendering the policy can trigger income taxes on gains.

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What is liability insurance?

Liability insurance covers legal and financial responsibility if the policyholder is found at fault for causing injury, property damage, or other losses to third parties.

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