What is a policy limit in insurance coverage?

A policy limit is the maximum amount an insurer will pay for a covered loss. It applies to different coverage types, such as liability, property, or medical expenses. Policyholders should choose limits that match their financial protection needs.

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How did the concept of risk assessment improve life insurance?

The development of mortality tables, medical underwriting, and risk categorization enabled insurers to create fairer premiums and ensure long-term financial stability.

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What is the role of a facultative reinsurer?

The reinsurer assesses, prices, and assumes a portion of the risk from the ceding insurer, providing financial protection for large claims.

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Can an employer terminate an employee while they are receiving workers' compensation benefits?

Employers cannot fire an employee in retaliation for filing a claim. However, employment can be terminated for legitimate business reasons, such as company downsizing or an employee’s inability to return to work after full recovery.

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How long must I hold a policy before it gains surrender value?

Most policies require a minimum holding period, often two to three years, before they acquire a surrender value, depending on the insurer and policy type.

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How do I obtain an E&S policy?

E&S policies are purchased through licensed surplus lines brokers who match clients with insurers specializing in high-risk coverage.

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What does health insurance typically cover?

Health insurance covers medical expenses such as doctor visits, hospital stays, prescription drugs, preventive care, surgeries, and emergency treatments. Coverage varies depending on the plan and provider, and policyholders may have to pay deductibles, copayments, and coinsurance.

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What does an insurance adjuster do?

An adjuster investigates the claim by inspecting damages, interviewing witnesses, reviewing records, and determining the compensation amount based on policy terms.

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