What is a facultative certificate?

A facultative certificate is a legal document issued by the reinsurer that confirms coverage details, including terms, conditions, limits, and premium rates agreed upon for a specific facultative reinsurance arrangement.

Does homeowners insurance liability cover injuries caused by vandalism?

Vandalism-related injuries are typically not covered under homeowners liability. However, if the vandalism occurs on your property and leads to injury, you might be protected, depending on your policy’s terms.

Why do insurance policies have waiting periods?

Insurers use waiting periods to prevent fraudulent claims and ensure coverage is used for genuine long-term protection rather than immediate needs.

What are war and nuclear exclusions in insurance policies?

Most insurance policies exclude damages caused by war, civil unrest, and nuclear hazards. These risks are considered too catastrophic for insurers to cover, and they are generally managed by government entities or special insurance programs.

Are there any limitations to on-demand insurance?

Yes, on-demand insurance may have limitations such as lower coverage limits or fewer options for specific types of coverage, depending on the provider and the policy selected.

Why is insurable interest important in insurance?

Insurable interest prevents moral hazard and ensures that insurance contracts are legally valid. Without it, individuals could take out policies on assets or people in whom they have no financial stake, leading to fraudulent claims or unethical behavior. This requirement aligns insurance with its purpose of risk protection rather than speculation.

What happens when my short-term disability benefits run out?

If you are still unable to work, you may transition to long-term disability insurance if covered, apply for Social Security Disability Insurance (SSDI), or seek other financial assistance.

What is the difference between variable and indexed universal life insurance?

Variable universal life (VUL) allows direct investment in market securities, while indexed universal life (IUL) ties interest earnings to a stock market index with limits.