Can insurance fraud affect my premiums?

Yes, insurance fraud leads to higher costs for insurers, which are often passed on to honest policyholders through increased premiums. Fraudulent claims contribute to financial losses, requiring insurers to adjust pricing to cover risks and maintain stability in the insurance market.

What factors affect the cost of cyber insurance?

Key factors include company size, industry risk level, amount of stored data, cybersecurity practices, previous claims history, and coverage limits. Strong cybersecurity protocols may reduce premiums.

What is public health insurance?

Public health insurance is a government-funded system that provides health coverage to citizens, ensuring access to medical services regardless of income or health status.

Can the policyholder change the beneficiaries?

Yes, a policyholder can generally change the beneficiaries on their policy by submitting a formal request to the insurer, as long as the policy terms allow for this change.

How does proportional reinsurance work for a ceding company?

In proportional reinsurance, the ceding company and reinsurer share premiums and claims proportionally. For example, if the reinsurer assumes 60% of the risk, it also receives 60% of the premiums.

What is a reinsurance company?

A reinsurance company provides insurance to primary insurers by covering a portion of their risks to enhance financial stability and capacity.

What are common exclusions in treaty reinsurance contracts?

Exclusions vary but often include war, nuclear risks, fraudulent claims, cyber risks, and extreme natural disasters not covered under standard terms. These exclusions help reinsurers manage unquantifiable risks.

What is umbrella insurance, and do I need it in addition to homeowners insurance?

Umbrella insurance is an additional layer of liability coverage that goes beyond the limits of your standard homeowners insurance. It provides extra protection in case you are sued for damages that exceed the limits of your home or auto policies. It can cover things like major accidents, defamation, or large lawsuits. While not mandatory, umbrella insurance can provide extra peace of mind, particularly if you have significant assets.