How do regulators ensure insurance product suitability?

Regulators require insurers to design policies that meet customers' needs, conduct regular product reviews, and avoid selling misleading or unsuitable coverage. They may ban products that provide poor value or have deceptive terms.

Is freight insurance mandatory for all shipments?

Freight insurance is not always mandatory, but it is highly recommended to avoid financial losses due to unforeseen damages or losses.

Can renters liability insurance help if I accidentally start a fire?

Yes, if you accidentally cause a fire in your rental, renters liability insurance can cover damages to the property and legal claims against you. However, damage to your personal belongings would require separate personal property coverage.

Can replacement cost coverage be added to renter’s insurance?

Yes, many renter’s insurance policies offer an option to upgrade from actual cash value (ACV) to replacement cost coverage for personal belongings. This ensures that lost or damaged items are replaced with new ones rather than depreciated values.

What is unfair claim settlement practice?

This includes delaying payments, denying valid claims without explanation, misrepresenting policy terms, or failing to investigate claims properly, violating consumer protection laws.

What are the challenges in providing catastrophe insurance in developing countries?

Many developing countries lack access to affordable catastrophe insurance due to weak financial markets, high-risk exposure, and limited government support. Insurers face difficulties in assessing risks due to insufficient data. Microinsurance and international risk-sharing programs help improve access to coverage in these regions.

What is the significance of the solvency ratio in insurance?

The solvency ratio measures an insurer’s financial strength, indicating whether it has enough capital to meet its obligations, ensuring policyholder claims can be paid even in adverse conditions.

Are employees covered if they are injured outside of the workplace?

Injuries sustained while performing work-related duties outside the office, such as traveling for business, may be covered under workers' compensation insurance.