How do risk pools help prevent adverse selection?

Risk pools spread the cost of claims across a diverse group of individuals. If participation includes both high- and low-risk individuals, insurers can keep premiums stable. Government mandates, subsidies, and employer-based insurance systems often help maintain balanced risk pools.

What is the process for getting a license from IRDAI?

Insurance companies must apply to IRDAI, meet regulatory requirements like capital adequacy, demonstrate financial stability, and obtain approval from the authority before commencing operations.

How do I file a claim under marine freight insurance?

To file a claim, notify the insurer immediately and provide necessary documents such as the insurance policy, bill of lading, commercial invoice, damage report, photographs, and surveyor’s report. The insurer will assess the claim and, if valid, provide compensation based on the policy terms and the extent of the loss.

What happens if I don’t sign up for Medicare when I turn 65?

If you do not enroll in Medicare when first eligible, you may face late enrollment penalties for Part B and Part D unless you have qualifying coverage, such as employer-sponsored insurance.

How does parametric insurance differ from traditional insurance?

Unlike traditional insurance, which compensates based on actual losses, parametric insurance pays based on predefined triggers, such as wind speed or earthquake magnitude, simplifying claims.

What is the deductible for comprehensive coverage?

The deductible is the amount you pay out of pocket before your insurance covers the rest of the claim. It typically ranges from $250 to $1,000. Choosing a higher deductible lowers your premium, but it increases the amount you must pay before receiving coverage benefits.

Can CPCU exams be taken online?

Yes, CPCU exams can be taken online with remote proctoring or at designated test centers. Online options provide flexibility for professionals balancing work and study.

What types of weather-related risks are covered by agricultural insurance?

Agricultural insurance covers weather-related risks like droughts, floods, hailstorms, frost, excessive rainfall, and extreme temperatures that damage crops or reduce yields.