Does liability insurance cover my own car?

No, liability insurance does not cover damage to your own vehicle or personal medical expenses. To cover your own car, you need collision and comprehensive coverage. For medical expenses, you may need personal injury protection (PIP) or medical payments (MedPay).

How does an out-of-pocket maximum work?

You pay for healthcare costs such as deductibles, copayments, and coinsurance until you reach your out-of-pocket maximum. After that, your insurer covers all eligible expenses for the remainder of the policy year, excluding non-covered services.

How does a contingent beneficiary differ from a secondary beneficiary?

They are the same—both refer to a backup beneficiary who receives benefits if the primary beneficiary is unable to do so.

What is the Fellowship of the Society of Actuaries (FSA)?

The FSA designation is the highest professional designation granted by the SOA. To achieve FSA status, individuals must complete a series of advanced exams and demonstrate proficiency in a specific actuarial specialty, such as life insurance, health insurance, or pensions.

What weather events are covered under agricultural insurance?

Most policies cover drought, excessive rainfall, flooding, hailstorms, strong winds, frost, and extreme heat or cold. Some policies may also cover secondary risks like wildfires caused by drought.

Can I purchase comprehensive insurance without collision coverage?

Yes, you can buy comprehensive insurance alone, but many insurers bundle it with collision coverage for broader protection.

How does reinsurance impact the solvency ratio?

Reinsurance helps insurers transfer some of their risks to another company, reducing their liabilities and improving their solvency ratio. By spreading risk, insurers can maintain financial stability and continue to meet their policyholder obligations, even in the event of large claims or catastrophic losses.

What types of risks are typically covered by an auto insurance policy?

Auto insurance typically covers risks such as accidents, theft, vandalism, natural disasters, liability for injuries to others, and damage to your own vehicle through collision or comprehensive coverage.