What is the role of solvency margin in insurance?

The solvency margin is the extra capital that insurers hold above the required minimum to absorb unexpected losses. It acts as a financial buffer, ensuring that insurers remain solvent during periods of high claims, economic downturns, or catastrophic events.

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What types of risks are covered under travel insurance?

Travel insurance covers risks such as trip cancellations, medical emergencies, lost luggage, travel delays, and emergency evacuations, offering financial protection in case of unexpected events during a trip.

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What are the ethical concerns surrounding AI?

Ethical concerns include data privacy, algorithmic bias, AI decision transparency, job displacement, deepfakes, and the misuse of AI in surveillance.

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Does an automatic bank draft prevent policy lapse?

Yes, setting up automatic payments can prevent lapse by ensuring premiums are paid on time. However, policyholders should monitor their accounts to ensure sufficient funds and avoid unintended missed payments due to banking errors.

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What events typically trigger business interruption coverage?

Covered events usually include fire, storms, theft, or other physical damage to the business premises that directly prevent normal operations from continuing.

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Is whole life insurance more expensive than term life insurance?

Yes, whole life insurance premiums are higher than term life insurance because it provides lifelong coverage and a cash value component. While it costs more, it offers benefits like permanent protection and investment growth, making it a long-term financial tool rather than just a death benefit.

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How do I choose the right insurance policy?

Choosing the right policy depends on your needs, budget, and risk factors. Consider factors like coverage options, premium costs, deductibles, exclusions, and the reputation of the insurer. Consulting an insurance expert can help in making an informed decision.

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What is the significance of policy renewal terms?

Renewal terms outline how a policy continues after its term expires, including premium adjustments, eligibility for automatic renewal, and any required medical or financial evaluations.

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