How is the payout determined for a comprehensive claim?

The payout is based on your car's actual cash value (ACV), which is the market value minus depreciation. If the repair cost exceeds the ACV, your insurer may declare the vehicle a total loss and compensate you accordingly, minus your deductible.

How do insurers classify perils?

Insurers classify perils as either named perils (specifically listed risks covered by a policy) or open perils (covering all risks except those explicitly excluded). The classification affects coverage scope and determines when claims are payable.

How much capital is needed to start a captive insurance company?

Capital requirements vary based on domicile and coverage scope but typically range from $250,000 to several million dollars, depending on regulatory and risk-based needs.

When did life insurance spread to the American colonies?

Life insurance arrived in the American colonies in the mid-18th century. The Presbyterian Synod of Philadelphia created a fund in 1759 to provide benefits for ministers and their families, marking one of the earliest structured life insurance systems in America.

How does treaty reinsurance differ from facultative reinsurance?

Treaty reinsurance covers a predefined set of policies automatically, while facultative reinsurance involves case-by-case negotiations for individual risks that the insurer wishes to reinsure.

What happens if a neighbor’s tree falls on my house?

If the tree was healthy, your insurance covers damages. If it was neglected, your neighbor’s insurance might be responsible for the claim.

Is the Sum Assured amount taxable?

The Sum Assured itself is not taxable in the hands of the nominee or beneficiary when paid out due to death. However, if the payout is received as a part of a maturity benefit, any bonuses or interest earned might be subject to tax depending on the specific circumstances.

How does an endorsement differ from a standard policy change?

Unlike general policy revisions, endorsements are formal amendments that modify specific terms without requiring a completely new contract, offering policyholders flexibility to customize their coverage.