What is captive insurance?

Captive insurance is a subsidiary company created by a parent organization to provide insurance coverage for the parent company's risks. Unlike traditional insurance, a captive allows businesses to retain underwriting profits, control claims handling, and customize policies to suit specific risks. Captives can be used to insure risks that may be too costly or unavailable in the commercial market.

How are life insurance dividends taxed?

Life insurance dividends are generally not taxable if they are considered a return of premiums paid. However, if dividends are left to accumulate interest, the interest earned is taxable.

Does cyber insurance cover the cost of restoring lost or corrupted data after a breach?

Many cyber insurance policies cover the cost of data restoration, including data recovery, system repairs, and forensic investigations to identify the breach’s cause.

What is comprehensive auto insurance?

Comprehensive auto insurance is a type of coverage that helps pay for damage to your vehicle caused by non-collision incidents, such as theft, vandalism, fire, hail, flooding, and animal strikes. It is typically optional but may be required if you lease or finance your vehicle.

What is the difference between primary and excess insurance policies?

A primary policy covers losses first, while an excess policy provides additional coverage beyond the limits of the primary policy, often used for liability or catastrophic coverage.

How long does it take for cash value to build up?

Cash value typically grows slowly in the initial years of the policy, and builds more substantially over time as premiums continue to be paid.

What role does blockchain play in cybersecurity?

Blockchain enhances cybersecurity by making data immutable and resistant to hacking. Its decentralized nature prevents single points of failure, and cryptographic encryption ensures secure transactions, protecting against data breaches and unauthorized access.

How do reinsurers assess facultative reinsurance risks?

Reinsurers analyze risk factors such as underwriting quality, historical loss data, risk exposure, location, policy terms, and industry-specific hazards before accepting coverage.