How does long-term disability insurance work?

LTD insurance pays a percentage of your salary—typically 50-70%—if a qualifying disability prevents you from working. Benefits begin after an elimination period and continue until you recover or reach the maximum benefit duration stated in your policy.

How does a treaty reinsurance agreement help insurers manage risk?

A treaty reinsurance agreement helps insurers manage risk by transferring a portion of their portfolio's risk to a reinsurer. This reduces the primary insurer’s exposure to large claims, stabilizes their financial position, and increases their ability to write new policies without overburdening their reserves. By diversifying risk, insurers can maintain solvency and avoid financial strain during periods of high claims activity.

How does umbrella liability insurance work?

Umbrella liability insurance provides extra coverage beyond the limits of other liability policies, covering large claims and lawsuits.

How is IoT (Internet of Things) influencing insurance policies?

IoT devices, such as smart home sensors and wearable health trackers, provide real-time data to insurers, enabling proactive risk management. Insurers can offer discounts for healthy lifestyles or safer home environments based on collected data.

Can a person have insurable interest in their spouse?

Yes, spouses have an automatic insurable interest in each other since they are financially and emotionally dependent, making them eligible for life or health insurance policies.

What is the role of cybersecurity assessments in cyber insurance?

Cybersecurity assessments help insurers determine the level of risk a business faces, which can influence premiums and coverage limits. Regular assessments may also be a requirement for purchasing or renewing ransomware cyber insurance.

Does public health insurance cover pre-existing conditions?

Yes, most public health insurance programs cover pre-existing conditions. In the U.S., Medicaid, Medicare, and ACA marketplace plans do not deny coverage based on prior health issues.

How does technology help insurers manage loss ratios?

Insurers use AI, data analytics, and automation to detect fraud, improve underwriting accuracy, and streamline claims processing, leading to better loss ratio management.