How does an HMO handle preventive care?

HMOs focus on preventive care and typically cover services such as annual check-ups, vaccinations, cancer screenings, and wellness visits at no extra cost. The goal is to detect and manage health issues early to prevent costly medical complications later.

Are legal fees included in the limit of liability?

In some policies, legal fees may be included within the limit of liability, while in others, they may be covered separately. It is important to review the policy terms to understand how legal fees are handled.

What does an actuary do?

An actuary assesses financial risk by using mathematics, statistics, and financial theory to analyze uncertain future events, primarily in insurance and finance industries.

How are insurance brokers and agents paid?

Brokers earn commissions from insurance companies when they sell a policy and may charge clients fees for specific services. Agents also earn commissions but may receive additional compensation through bonuses or incentives from insurers based on sales performance. The commission structure varies by policy type and insurer.

What is the "total loss" in hull insurance?

A total loss occurs when the vessel is completely destroyed, sunk, or damaged beyond repair. It can be an actual total loss (completely lost) or a constructive total loss (repair costs exceed value).

What is Medicaid?

Medicaid is a government-funded health insurance program that provides free or low-cost healthcare coverage to eligible low-income individuals and families.

How do reinsurers assess risk?

Reinsurers assess risk through actuarial analysis, historical data, catastrophe modeling, and industry trends. They use sophisticated tools to evaluate the likelihood of claims, ensuring they charge appropriate premiums and maintain profitability. Risk assessment also involves considering geographical, economic, and regulatory factors.

How does coinsurance work with out-of-pocket maximums?

Once a policyholder reaches the out-of-pocket maximum, the insurer covers 100% of eligible expenses for the remainder of the policy term, eliminating further coinsurance payments.