How does subrogation impact personal injury claims?

In personal injury cases, subrogation allows health insurers or workers' compensation providers to recover medical costs from the at-fault party’s insurer. This prevents double recovery by the injured party and ensures that medical costs are covered by the responsible party rather than the insurer.

How do auto insurance deductibles work?

For collision and comprehensive claims, the insured pays the deductible first, and the insurer covers the rest up to policy limits. Liability coverage typically does not have a deductible.

What role does blockchain play in cryptocurrency?

Blockchain enables secure, decentralized record-keeping for cryptocurrencies like Bitcoin and Ethereum, ensuring transparent and tamper-proof transactions.

How do insurers use risk classification to address adverse selection?

Insurers segment customers based on factors like age, health status, driving history, and lifestyle. By classifying risk accurately, they can set appropriate premiums and reduce the impact of adverse selection.

Why do I need travel insurance if I already have health insurance?

While your domestic health insurance may cover medical expenses at home, it often does not cover you abroad. Travel insurance (medical) ensures you have the necessary coverage for emergencies like hospital visits, treatments, and evacuations while traveling, offering protection if you're far from home.

Can I adjust my premium payments in a Universal Life policy?

Yes, Universal Life Insurance allows policyholders to increase, decrease, or skip premium payments, as long as there is sufficient cash value to cover the policy’s cost. This flexibility makes UL a great option for individuals whose income varies, but it requires careful monitoring to avoid policy lapses.

Can an insured be covered under multiple policies?

Yes, an insured can be covered under multiple policies. For example, someone may have health coverage through both an employer and a spouse’s plan. In such cases, coordination of benefits determines which policy pays first when a claim is filed.

What is flood insurance and why is it necessary?

Flood insurance covers property damage caused by flooding, which is typically excluded from standard homeowners policies, and is often required in high-risk flood zones.