What is a claims reserve in claim adjustment?

A claims reserve is the estimated amount insurers set aside to cover the anticipated settlement costs of a claim. It helps insurers manage financial obligations while the claim is being processed.

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How can I choose between an insurance broker or an insurance agent?

Choosing depends on whether you prefer personalized advice and a wide range of options (broker) or if you have a preference for working with a specific insurer (agent).

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Can copayments and coinsurance change each year?

Yes, insurance companies may adjust copays and coinsurance rates annually based on plan updates, healthcare costs, and regulatory changes. It is important to review your insurance plan details each year during open enrollment.

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Can renters get earthquake insurance?

Yes, renters can purchase earthquake renters insurance, which covers personal belongings and additional living expenses if their rental unit is damaged by an earthquake, but it does not cover building repairs.

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Who regulates insurance reserves?

Insurance reserves are regulated by state insurance departments, federal agencies, and industry standards to ensure insurers maintain adequate financial backing for future claims.

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What is the role of the broker in facultative reinsurance?

A broker acts as an intermediary between the ceding insurer and the reinsurer, helping to negotiate terms, place risks with appropriate reinsurers, and facilitate the communication and agreement process. They may also assist in determining the optimal reinsurance structure.

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Is parametric insurance regulated like traditional insurance?

Yes, it is subject to regulatory oversight, though specific rules vary by country. Regulators ensure transparency, proper risk modeling, and fair practices to protect policyholders.

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What software do actuaries use?

Actuaries use software like R, Python, SAS, MATLAB, Excel, and specialized actuarial tools like Prophet and AXIS.

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