How does the NAIC help during insurance company failures?

When an insurance company becomes insolvent, the NAIC assists state regulators in managing liquidation processes and coordinating with guaranty associations to ensure policyholders receive compensation for claims.

What is pet accident insurance?

Pet accident insurance covers unexpected injuries like broken bones, cuts, poisoning, or ingestion of foreign objects, helping to reduce the financial burden of emergency veterinary care.

When can I enroll in Medicare?

Initial enrollment starts three months before turning 65 and lasts for seven months. There is also a General Enrollment Period (Jan 1–Mar 31) and Special Enrollment Periods (SEP) for qualifying life events, like losing employer coverage. Late enrollment may result in penalties.

Can external factors influence an insurer's loss ratio?

Yes, external factors such as natural disasters, economic downturns, or shifts in health trends (like a pandemic) can influence the loss ratio by increasing the frequency or severity of claims, making it harder for insurers to maintain a balanced ratio.

What are the economic consequences of adverse selection in insurance markets?

It can lead to higher premiums, market inefficiencies, insurer withdrawals, and reduced availability of affordable coverage for low-risk individuals.

How do Insurance Regulatory Authorities protect policyholders?

They establish regulations that ensure insurance companies fulfill their obligations. This includes setting solvency standards, enforcing fair claims settlement practices, and providing avenues for dispute resolution. They also ensure companies maintain reserves to pay claims.

Does Freight Marine Insurance cover the cost of salvaging cargo?

Yes, in many cases, Freight Marine Insurance will cover the costs of salvage if cargo needs to be recovered following an accident or disaster at sea. This typically includes the costs of hiring salvagers and securing the cargo.

How is liability insurance different from full coverage?

Liability covers damages to others, while full coverage includes additional protections such as collision and comprehensive insurance for your vehicle.