What is an insurance premium?

An insurance premium is the amount you pay to an insurance company for coverage. It can be paid monthly, quarterly, or annually, depending on your plan.

What is the impact of reinsurance on a ceding company’s balance sheet?

Reinsurance improves a ceding company’s balance sheet by reducing liabilities, increasing solvency margins, and stabilizing earnings, helping it manage high-risk exposures while ensuring regulatory compliance.

What is excess of loss reinsurance?

Excess of loss reinsurance protects insurers by covering claims above a specified threshold, ensuring financial stability during large loss events.

What is facultative reinsurance?

Facultative reinsurance is a type of reinsurance where the reinsurer evaluates individual risks before agreeing to provide coverage. Each policy or risk is considered separately, and the reinsurer has the right to accept or reject the risk based on its underwriting criteria.

Does homeowners insurance liability cover damage to my property?

No, homeowners insurance liability does not cover damage to your own property. It specifically covers damages or injuries caused to others. Your property damage would typically be covered under dwelling or personal property coverage.

How do I file a third-party insurance claim?

Report the incident to the insurer, submit evidence like photos and police reports, and cooperate during the claims investigation process.

What exclusions exist in auto insurance policies?

Auto insurance typically excludes intentional damage, wear and tear, mechanical breakdowns, using a personal vehicle for commercial purposes without proper coverage, driving under the influence, and damages caused by unlicensed drivers.

How long do I need to participate in a UBI program to get discounts?

Most UBI programs track driving behavior for at least 30 to 90 days to determine eligibility for discounts, though some may offer immediate feedback or rewards.