What are the penalties for insurance fraud in the U.S.?

Penalties vary by state but can include fines, imprisonment, restitution, community service, and loss of professional licenses. The severity of punishment depends on the amount of fraud, involvement in organized schemes, and prior offenses. Insurance fraud is prosecuted as a felony in many cases.

Does cyber insurance cover reputational damage after a data breach?

Many policies include public relations support, helping businesses manage reputational damage, craft crisis responses, and rebuild trust with customers after a data breach.

What does public health insurance cover?

Coverage varies by country but generally includes essential health services such as hospital care, doctor visits, preventive care, medications, and sometimes dental and vision services.

Does the policyholder need to notify the insurer of changes in personal information?

Yes, it is important for the policyholder to update the insurer about changes in personal information such as address, marital status, or changes in health, as these can affect the policy's terms and coverage.

What happens if a reinsurer defaults on its obligations?

If a reinsurer defaults, the ceding company remains responsible for paying claims to policyholders. This risk is mitigated through credit ratings, collateralized reinsurance, and regulatory oversight of reinsurers.

Why do insurance companies need reinsurance?

Insurers use reinsurance to manage large claims, diversify risk exposure, improve financial stability, and meet regulatory solvency requirements.

What is a commutation clause in treaty reinsurance?

A commutation clause allows both parties to settle future liabilities under a treaty reinsurance agreement at a predetermined amount. It helps close outstanding claims and reduce long-term administrative costs.

Does homeowners insurance liability cover injuries caused by pets?

Yes, homeowners insurance liability coverage may cover injuries caused by pets, such as dog bites. However, some policies may exclude certain high-risk breeds, so it’s important to review the policy.