Who are the key participants in a facultative reinsurance transaction?

The key participants include the ceding insurer (primary insurer seeking coverage), the reinsurer (company providing reinsurance), and sometimes reinsurance brokers who facilitate negotiations between the two parties.

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Does homeowners insurance liability cover accidents in rented properties?

If you are renting a property, homeowners insurance liability typically wouldn’t apply. You would need renters insurance for liability coverage. If you own a rental property, landlord insurance might offer liability coverage.

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How long does it take to process a third-party insurance claim?

Claim processing varies, but it typically takes a few weeks, depending on documentation, investigation, and legal procedures involved.

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Is terrorism covered under standard insurance policies?

Most insurance policies exclude acts of terrorism. However, businesses can purchase terrorism insurance separately. Homeowners may need to check with their insurer to see if terrorism coverage is included or available as an add-on.

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How is on-demand insurance different from traditional insurance?

On-demand insurance is more flexible and short-term compared to traditional insurance, which typically involves long-term commitments and fixed coverage terms. On-demand policies are customizable and can be paused or canceled.

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How does indemnity apply in construction contracts?

In construction contracts, indemnity clauses protect parties from financial losses due to negligence, property damage, or legal claims. Contractors, subcontractors, and property owners use indemnity provisions to allocate responsibility for accidents, defects, and liabilities arising during construction projects.

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Do I have to pay taxes on short-term disability benefits?

If your employer pays the premiums, benefits are taxable. If you pay for the policy with after-tax dollars, benefits are generally tax-free. Consult a tax professional for specifics.

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Can I borrow against the cash value of my universal life insurance policy?

Yes, policyholders can take loans against the cash value, but unpaid loans may reduce the death benefit or cause the policy to lapse if not repaid.

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