Can my landlord require a specific liability coverage amount?

Yes, landlords can require tenants to carry a specific amount of liability coverage, often $100,000 or more. This ensures that tenants have enough coverage to pay for accidental damages or injuries that occur in the rental property. Always check your lease agreement.

How do RBC ratios affect an insurer’s financial health?

RBC ratios compare an insurer’s available capital to its required capital, with higher ratios indicating financial strength and lower ratios signaling potential solvency concerns.

What are the different types of insurance coverage?

Common types include liability, property, health, life, auto, business, disability, travel, and specialty insurance coverage.

What is coinsurance in health insurance?

Coinsurance is the percentage of medical expenses shared between the insurer and the policyholder after the deductible is met. For example, if the policy has 80/20 coinsurance, the insurer pays 80%, while the insured covers 20%.

What is moral hazard, and how does it affect insurance risk management?

Moral hazard refers to the tendency for insured individuals to take on greater risks because they do not bear the full financial cost of their actions. It is mitigated by policy conditions and monitoring.

Who needs professional liability insurance?

Any professional who provides advice or services, such as doctors, lawyers, consultants, architects, engineers, and IT professionals, should have professional liability insurance. It helps protect against lawsuits alleging mistakes, negligence, or failure to deliver promised results, which could lead to financial losses for clients.

Will my policy cover emergency situations during the waiting period?

Most policies do not cover non-accidental claims during the waiting period, but some may provide limited coverage for emergencies. Check your policy’s terms to understand specific exclusions.

Is an insured responsible for understanding all aspects of their policy?

Yes, the insured should review and understand their policy terms, coverage, exclusions, and responsibilities, as this ensures informed decisions about claims and coverage.