What is business interruption insurance?

Business interruption insurance helps businesses cover lost income and operational expenses if they are forced to close due to a covered event, such as a fire or natural disaster. It ensures that companies can continue to pay bills, salaries, and other costs while they recover.

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Why do different insurers have varying solvency ratios?

Insurers have different solvency ratios due to factors like risk exposure, investment strategies, claims history, and regulatory requirements. Larger, diversified insurers tend to have stronger solvency ratios than smaller or high-risk insurers.

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Do I pay the deductible upfront?

Yes, in most cases, you must pay the deductible at the time of the claim. However, for health insurance, the deductible may be paid over time as medical bills accumulate.

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What is risk management in insurance?

Risk management in insurance involves identifying, assessing, and mitigating risks that could lead to financial loss. It includes strategies like risk avoidance, reduction, transfer (through insurance), and acceptance. Organizations and individuals use risk management to minimize exposure to potential claims, lawsuits, or damages.

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Can an automatic premium loan prevent a policy lapse?

Some life insurance policies offer an automatic premium loan (APL) feature that uses the policy’s cash value to cover missed premiums, preventing immediate lapse.

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Does trip cancellation insurance cover the cost of non-refundable tours or activities?

Yes, if your trip cancellation is due to a covered reason, the policy can reimburse you for the cost of non-refundable tours or activities that you pre-paid for.

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What is Whole Life Insurance?

Whole Life Insurance is a permanent life insurance policy that provides coverage for the insured’s entire lifetime, as long as premiums are paid. It also includes a cash value component that grows over time, offering both a death benefit and savings.

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How does insurable interest affect the insured status?

Insurable interest means the policyholder must have a financial or personal stake in the insured’s well-being, preventing individuals from insuring unrelated people or properties for profit.

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