How does facultative reinsurance differ from treaty reinsurance?

Facultative reinsurance applies to individual policies and requires negotiation for each case, while treaty reinsurance automatically covers a portfolio of policies based on a predefined agreement between the ceding insurer and the reinsurer.

Can I customize my on-demand insurance coverage?

Yes, many providers offer customizable coverage, allowing users to select specific risks, coverage amounts, and activation periods to match their exact needs and budget.

Can a policyholder remove a beneficiary from a policy?

Yes, unless the beneficiary is irrevocable, a policyholder can remove or replace a beneficiary by updating the policy with the insurer.

Does travel insurance cover baggage delay as well?

Yes, most travel insurance policies cover baggage delay. If your luggage is delayed for a specific period (e.g., 12-24 hours), you may get reimbursed for essential purchases like clothing, toiletries, and medications.

How is the interest rate determined in a universal life policy?

The interest rate is based on market conditions, insurer-set minimums, or index performance, depending on whether it is a traditional, indexed, or variable universal life policy.

How do regulators use the loss ratio in the insurance industry?

Regulators monitor loss ratios to ensure insurers maintain financial health, set fair premiums, and comply with minimum payout requirements.

How long does it take to become an actuary?

It typically takes 6 to 10 years to become a fully qualified actuary. The process involves passing multiple actuarial exams, gaining relevant work experience, and fulfilling professional development requirements.

How does the NAIC ensure insurance market solvency?

The NAIC uses financial reporting, analysis tools, and regulatory measures to monitor and ensure that insurers have sufficient assets to meet their obligations to policyholders.