What is an indemnity clause in a contract?

An indemnity clause is a contractual agreement where one party agrees to compensate another for potential losses, damages, or liabilities. It is commonly used in business agreements, insurance policies, and service contracts to allocate financial risk.

What is an umbrella insurance policy?

An umbrella policy provides additional liability coverage beyond standard policies, offering extra protection against large claims that exceed primary policy limits.

What happens if an insurance company violates FCA regulations?

If an insurance company breaches FCA rules, it can face fines, license suspension, legal action, or mandatory corrective measures. The FCA may also force compensation payments to affected customers and refer cases to legal authorities if necessary.

Do I need Professional Liability Insurance if I have General Liability Insurance?

Yes, while General Liability covers physical damages, Professional Liability Insurance specifically protects against claims related to errors, negligence, or omissions in the services you provide.

How do I choose the right coverage amount for my term policy?

Consider income replacement, debts, future expenses, inflation, and dependents' financial needs when selecting an appropriate sum assured for the policy.

Do out-of-network expenses count toward the out-of-pocket maximum?

Usually, out-of-network expenses do not count toward your in-network out-of-pocket maximum. Some plans have separate limits for out-of-network expenses, which are typically much higher. Always verify with your insurer whether out-of-network costs apply.

How do I designate a beneficiary?

Beneficiaries are designated by filling out a beneficiary designation form provided by the insurance company. The policyholder must provide names, relationships, and allocation percentages.

Does the SOA offer scholarships or financial aid for students?

Yes, the SOA provides scholarships, grants, and financial aid to actuarial students to encourage professional development and education.