How does a ceding company benefit from reinsurance?

A ceding company benefits by mitigating financial losses from catastrophic claims, gaining access to reinsurer expertise, improving financial ratios, and ensuring regulatory compliance. Reinsurance also enhances an insurer’s ability to manage large policyholder obligations efficiently.

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How do regulatory authorities monitor insurer solvency?

Regulatory authorities monitor solvency through periodic financial reporting, solvency ratio assessments, audits, and stress testing, intervening when insurers show signs of financial distress or non-compliance.

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Does cyber insurance cover reputational damage from a ransomware attack?

Some policies provide public relations support to help mitigate reputational harm and rebuild customer trust after an attack.

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What is not covered by homeowners insurance?

Common exclusions include floods, earthquakes, mold, normal wear and tear, pest damage, and acts of war. Homeowners may need separate policies or endorsements to cover these risks.

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How do age and health impact life insurance premiums?

Younger, healthier individuals typically pay lower life insurance premiums because they present a lower risk of premature death, while older or medically high-risk individuals face higher costs.

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Can I cancel my policy after filing a claim?

Yes, you can cancel your policy after filing a claim, but it might affect your ability to receive the full benefits of the claim or may result in penalties.

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Is usage-based insurance available for all drivers?

UBI is generally available to most drivers, but eligibility may depend on factors such as the state, insurance provider, and vehicle compatibility. Some insurers may restrict UBI programs to certain age groups or specific vehicle models.

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What happens if the claim amount is less than the deductible?

If the claim amount is lower than the deductible, the policyholder must pay the full cost, as the insurer does not contribute unless the deductible is exceeded.

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