How does the NAIC ensure insurance company solvency?

The NAIC maintains a solvency monitoring framework, including the Risk-Based Capital (RBC) model, financial reporting requirements, and state-based financial examinations. These tools help regulators assess an insurer’s ability to meet policyholder obligations and prevent insolvency risks.

Does pet insurance cover pre-existing illnesses?

Most pet insurance policies do not cover pre-existing conditions. However, some insurers may cover curable pre-existing conditions if the pet has been symptom-free for a specific period.

Can I switch insurers to avoid a waiting period?

Switching insurers may not always eliminate a waiting period unless the new insurer offers continuous coverage benefits or credits prior coverage duration.

What is the difference between moral hazard and adverse selection?

Moral hazard occurs when insured individuals change their behavior due to insurance coverage, while adverse selection refers to the problem where high-risk individuals are more likely to purchase insurance, leading to an imbalanced insurance pool. Both concepts affect risk management in insurance and finance.

Why is adverse selection a problem in health insurance?

In health insurance, unhealthy individuals are more likely to buy coverage, leading to rising costs, premium hikes, and potential market instability if healthier people opt out.

How does the FCA regulate claims handling in insurance?

The FCA enforces fair, timely, and transparent claims processing, ensuring insurers do not unfairly delay or deny legitimate claims.

How is the premium for Hull Insurance determined?

Hull Insurance premiums depend on factors such as the ship's age, value, type, operating region, and the scope of coverage chosen. The risk of the ship's activities also influences the cost.

Can I change my Medicare plan after enrolling?

Yes, you can switch plans during the Medicare Annual Enrollment Period (Oct 15 - Dec 7) or during a Special Enrollment Period if you qualify due to life changes.