What is reinsurance?

Reinsurance is when an insurance company transfers part of its risk to another insurer to reduce financial exposure. It helps insurers manage large claims and ensures they remain financially stable even after catastrophic losses.

What is the difference between risk retention and risk transfer in insurance?

Risk retention involves keeping the risk within the company, typically through deductibles or self-insurance, while risk transfer shifts the financial responsibility to another party, such as through reinsurance.

What’s the difference between routine care and accident/illness coverage?

Routine care covers preventive services like vaccinations, check-ups, and parasite prevention. Accident and illness coverage, on the other hand, helps pay for unexpected medical issues like broken bones, infections, cancer treatment, or emergency surgeries. They complement each other but serve different purposes.

Does employer-provided insurance have a waiting period?

Employer-sponsored health plans may have a waiting period before new employees can enroll in benefits, typically ranging from 30 to 90 days. However, coverage generally begins immediately once the waiting period ends.

Is the insured responsible for paying the premium?

Yes, the insured is generally responsible for paying the premium, which is the cost of maintaining the insurance coverage provided by the insurer.

Can AI predict claim likelihood accurately?

Yes, AI models use predictive analytics to assess an applicant’s risk profile and estimate the probability of future claims. By analyzing historical trends, behavioral patterns, and real-time data, AI enhances claim prediction accuracy.

Can insurers increase premiums without notice?

No, insurers must follow state regulations and provide advance notice before increasing premiums. In many cases, rate hikes must be justified and approved by state insurance regulators.

Does product liability insurance cover all types of injuries?

Product liability insurance generally covers injuries caused by a defect in the product, but it may exclude injuries caused by misuse or improper handling.