What is the difference between a captive and traditional insurance?

Traditional insurance involves purchasing coverage from a commercial insurer, while a captive is a self-insurance mechanism owned by the insured business. Captives provide greater control over claims handling, pricing, and policy customization, while traditional insurers spread risk across multiple policyholders and set premiums based on broader market conditions.

What are the red flags of insurance fraud?

Common red flags include inconsistent statements, exaggerated claims, previous fraud history, suspicious documentation, lack of evidence, and claimants refusing to cooperate with the investigation.

Can cyber insurance cover the cost of monitoring affected individuals’ credit after a data breach?

Yes, many cyber insurance policies include provisions for credit monitoring services for affected individuals, helping them protect against identity theft following a breach.

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.

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.

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.

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.

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.