What role do regulators play in the insurance industry?

Insurance regulators oversee insurers to ensure financial stability, fair practices, and consumer protection. They enforce solvency requirements, approve policy forms, regulate premium rates, and handle consumer complaints. Regulatory bodies differ by country, such as the NAIC in the U.S. and the FCA in the UK.

What does health insurance cover?

Health insurance covers medical expenses, including doctor visits, hospital stays, surgeries, prescriptions, and preventive care, helping individuals manage healthcare costs and ensuring access to necessary treatments.

How does subrogation apply in health insurance?

Health insurers seek reimbursement from third-party liability insurers if medical expenses result from accidents caused by another party.

Is liability insurance required by law?

Liability insurance is often required in certain industries and professions, such as healthcare, construction, and financial services. Many businesses also need coverage to meet contractual obligations or obtain licenses.

How does variable life insurance compare to variable universal life insurance?

Variable universal life offers greater flexibility in premium payments and death benefits, while variable life insurance generally has fixed premiums with investment-based cash value growth.

What happens when a policyholder misses a premium payment?

Missing a payment may lead to policy lapse, a grace period, or coverage termination depending on the insurance provider’s policies.

Can I use my cash value to pay premiums?

Yes, many policies allow you to use accumulated cash value to cover premium payments, which can be helpful if you experience financial difficulties. However, depleting cash value may cause the policy to lapse.

What is the role of stress testing in insurance solvency?

Stress testing evaluates how insurers withstand extreme scenarios, such as economic downturns or catastrophic losses, to assess capital adequacy and financial resilience.