How does a deductible work in comprehensive insurance?

A deductible is the amount you pay out of pocket before your insurance kicks in. For example, if repairs cost $2,000 and your deductible is $500, you pay $500, and the insurer covers the remaining $1,500. Higher deductibles lower premiums.

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Can a policyholder transfer ownership of an insurance policy?

Yes, policyholders can transfer ownership of certain policies, such as life insurance, through an assignment process, subject to insurer approval and legal documentation requirements.

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Can cash value be used as collateral for loans?

Yes, you can borrow against your life insurance policy’s cash value, using it as collateral, although the loan must be repaid to prevent it from reducing the death benefit.

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What are the environmental concerns associated with blockchain?

Blockchain, especially proof-of-work (PoW) systems like Bitcoin, consumes large amounts of energy due to mining processes. However, new consensus mechanisms like proof-of-stake (PoS) and eco-friendly blockchain solutions are being developed to reduce energy consumption.

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Can facultative reinsurance cover liability policies?

Yes, facultative reinsurance is commonly used for high-limit liability policies, including professional indemnity, directors & officers liability, and product liability insurance.

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Is there a time limit for purchasing trip cancellation insurance?

Many policies require you to purchase insurance within a specific timeframe (e.g., 14–21 days after booking) to qualify for full coverage, including pre-existing condition waivers and CFAR options.

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Do I have to pay taxes on the surrender value received?

Tax implications depend on your country’s tax laws. In some cases, surrender value may be subject to income tax, especially if the policyholder received tax benefits on premiums paid. Consult a tax expert for specific guidance.

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Can exclusions vary between insurance companies?

Yes, different insurers may have different exclusions based on their risk assessment models, state regulations, and policy structures, so it’s important to compare policies.

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