What is the difference between underwriting and claims processing?

Underwriting is the process of evaluating risk before issuing a policy, while claims processing occurs after a covered event happens. Underwriters determine policy terms and premiums based on risk assessment, whereas claims adjusters investigate and settle claims based on policy coverage, ensuring legitimate claims are paid efficiently.

How does a policyholder know if their insurer is covered by a guaranty fund?

Policyholders can check with their state insurance department or the National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) to verify coverage.

What insurance do freelance professionals need?

Freelancers often need professional liability insurance, general liability coverage, and sometimes business property or cyber liability insurance.

How does the NAIC support innovation in the insurance industry?

The NAIC promotes innovation by studying emerging trends like InsurTech, artificial intelligence, and blockchain. It provides regulatory guidance to help insurers adopt new technologies while ensuring consumer protection and financial stability.

Does pet accident insurance cover emergency surgeries?

Yes, most policies cover emergency surgeries resulting from accidents, including procedures for fractures, internal injuries, and foreign body removals.

What is Medicare Part D?

Medicare Part D is prescription drug coverage, available through private insurance plans. It helps lower the cost of medications and has different tiers for drug pricing. Plans have monthly premiums, deductibles, copays, and coverage gaps known as the “donut hole.”

What is an example of moral hazard in health insurance?

A common example of moral hazard in health insurance is when a person, knowing they have full coverage, overuses medical services, undergoes unnecessary treatments, or neglects preventive care, leading to higher costs for insurers.

How do group insurance plans reduce adverse selection risks?

Group plans spread risk across many employees, ensuring a mix of low- and high-risk individuals, which stabilizes premiums and minimizes adverse selection.