What is an insurance binder?

An insurance binder is a temporary agreement that provides coverage until the formal policy is issued. It serves as proof of insurance and outlines the key terms. Binders are often used when immediate coverage is required, such as during home closings or vehicle purchases.

What happens if I surrender my life insurance policy?

If a policy is surrendered, the insurer pays out the cash surrender value, which is the cash value minus surrender fees, and any gains may be subject to taxes.

Why do insurance companies need regulatory approval?

Regulatory approval ensures policies meet legal and financial standards, protecting consumers from unfair terms or unreliable insurers.

Is there compensation for lost milk production in case of livestock illness?

Some insurance policies provide compensation for income loss due to temporary or permanent milk production reduction caused by illness. This is more common in dairy insurance plans and may require veterinary certification of illness.

How much homeowners insurance do I need?

The amount of homeowners insurance you need depends on the value of your home, the cost to rebuild, and the value of your personal property. Typically, coverage should be enough to rebuild your home in the event of a total loss. You should also consider additional coverage for personal property, liability, and temporary living expenses. An insurance agent can help assess the appropriate coverage based on your needs.

Is a medical exam required for term insurance?

Some insurers require medical exams, but no-exam policies are available, often at higher premiums due to increased risk assessment.

Who needs Excess & Surplus Lines Insurance?

Businesses or individuals with unusual, high-risk, or hard-to-place insurance needs require E&S insurance. Examples include construction firms, amusement parks, cannabis businesses, and properties in hurricane-prone areas. It is also used for new businesses without an insurance history.

How does telematics influence auto insurance policies?

Telematics devices collect real-time driving data, allowing insurers to offer usage-based insurance (UBI) with premiums based on actual driving behavior.