What happens if a policyholder loses insurable interest after purchasing insurance?

If a policyholder loses insurable interest after purchasing insurance, the policy may become invalid. For example, if a person insures a property they later sell, they no longer have a financial stake in it, and the insurer may deny any claims made after the ownership transfer.

Can life insurance premiums change after purchasing a policy?

It depends on the policy type. Term policies usually have fixed premiums, but some policies, like universal life insurance, may have adjustable premiums based on market conditions or costs.

How does moral hazard impact auto insurance?

A driver with full coverage may drive recklessly or leave their car unlocked, knowing that insurance will cover damage or theft.

Is there an age limit for enrolling pets in routine care coverage?

Most providers allow routine care enrollment at any age, but some may have age restrictions, especially for senior pets. It’s advisable to check with your insurer to ensure your pet qualifies for coverage.

What happens if I stop paying premiums on my whole life policy?

If premiums stop, the policy may lapse, but some policies allow the use of accumulated cash value to cover payments or convert to a reduced paid-up policy.

What is a special form insurance policy?

A special form policy, often used for homeowners and commercial property, covers all perils except those explicitly excluded in the policy.

How does blockchain help in fraud prevention?

Blockchain prevents fraud by providing an immutable, shared ledger that records all transactions. Fraudulent claims, duplicate policies, and forged documents can be detected in real time, ensuring greater accuracy in identifying risks and preventing financial losses.

Are disability insurance benefits taxable?

If premiums are paid with after-tax dollars, benefits are tax-free. If your employer pays or you deduct premiums, benefits may be taxable as income.