How does a waiver or estoppel affect an insurance contract?

A waiver refers to the voluntary relinquishment of a known right, while estoppel prevents a party from acting in a way that contradicts their previous statements or actions. In insurance, if an insurer waives certain terms or conditions, or if they fail to object to a breach by the insured, they may not be able to later deny a claim or assert that the policy terms were violated. Both waiver and estoppel can limit the insurer’s ability to deny claims based on certain defenses.

What does product liability insurance cover?

It covers claims related to manufacturing defects, design flaws, improper labeling, failure to warn consumers about potential risks, and injuries or property damage caused by a product.

How do insurance companies determine the interest rate for universal life policies?

Interest rates are based on market conditions and the insurer’s declared rate, but policies have a minimum guaranteed interest rate to protect against declines.

What is an excluded peril?

An excluded peril is a risk or event that an insurance policy does not cover. Common exclusions include earthquakes, floods, nuclear disasters, war, and intentional damage. Policyholders can purchase additional coverage for some excluded perils through endorsements or separate policies.

What types of risks can be covered by a captive insurance company?

Captive insurance can cover various types of risks, including property, casualty, liability, workers' compensation, health, and employee benefits, depending on the specific needs of the parent company.

How did life insurance respond to increasing life expectancy?

Longer lifespans led to revised mortality tables, adjusted premium rates, and new policy structures to account for aging populations.

How are claims processed in weather-related agricultural insurance?

In traditional insurance, claims are processed after field assessments confirm crop damage. In index-based or parametric insurance, payouts are automatically triggered if weather data indicates adverse conditions, eliminating the need for lengthy inspections and reducing delays.

Will comprehensive insurance cover flood damage to my car?

Yes, comprehensive insurance covers flood damage, including interior and engine damage caused by rising water levels. It is especially valuable for drivers in flood-prone areas.