What happens if a policyholder stops paying premiums but the policy is still active?

If a policyholder stops paying premiums but the policy remains active, this could mean the coverage may be reduced or lapsed. Insurers often provide a grace period to make overdue payments.

How do regulatory authorities oversee ceding companies and reinsurance transactions?

Regulatory bodies monitor capital adequacy, risk retention levels, and solvency requirements to ensure ceding companies and reinsurers operate prudently and maintain financial stability in the insurance market.

What is proportional reinsurance?

In proportional reinsurance, the reinsurer shares a fixed percentage of both premiums and claims with the primary insurer.

What happens when a treaty reinsurance contract expires?

When a treaty reinsurance contract expires, the parties can negotiate renewal terms, modify coverage based on past performance, or seek alternative reinsurance arrangements. Claims incurred before expiration remain covered per contract terms.

What is the difference between personal liability and medical payments coverage?

Personal liability coverage compensates for bodily injury or property damage caused by you, while medical payments coverage pays for the medical bills of someone injured on your property, regardless of fault.

What is the difference between third-party and comprehensive insurance?

Third-party covers damages to others, while comprehensive insurance covers both third-party claims and the policyholder’s own damages.

Are exclusions the same for all insurance policies?

No, exclusions vary depending on the type of insurance (e.g., health, auto, home, or life insurance). Each policy type has different risks and exclusions tailored to those risks. Reviewing the specific terms of your policy is essential to understanding coverage limitations.

Can UBI help me if I have a bad driving history?

UBI may provide an opportunity to lower premiums if you improve your driving behavior over time. However, drivers with a history of risky driving may face higher rates initially.